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The S-Corp Split: How Business Owners Pay Themselves Twice and Skip the 15.3% Tax on Half of It
FG
FOMOGRAM Editorial Desk
Aug 1, 2026
EXECUTIVE SUMMARY
The federal tax code quietly lets certain business owners pay themselves in two separate buckets, and only one of those buckets triggers the 15.3% payroll tax. Knowing which bucket is which, and how to size each one, is where the real money lives.
The federal tax code quietly lets certain business owners pay themselves in two separate buckets, and only one of those buckets triggers the 15.3% payroll tax. Knowing which bucket is which, and how to size each one, is where the real money lives.
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