BONUS #1 · 1099 vs. S-CORP REASONABLE SALARY, FICA SHIELD & SOLO 401(k) OPTIMIZATION MATRIX

How to Split W-2 Salary and K-1 Distributions to Cut 15.3% Self-Employment Tax in Half Without Triggering an IRS Reasonable-Comp Audit

Net Business Profit	Schedule C 15.3% SE Tax	Optimal S-Corp W-2 / K-1 Split	Annual FICA Tax Saved
$80,000 Net Profit	$11,304 SE Tax	$38,000 W-2 Salary / $42,000 K-1 Distribution	Saves $5,499 / Year
$135,000 Net Profit	$19,074 SE Tax	$58,000 W-2 Salary / $77,000 K-1 Distribution	Saves $10,201 / Year
$220,000 Net Profit	$26,540 SE + Medicare Tax	$88,000 W-2 Salary / $132,000 K-1 Distribution	Saves $13,120 / Year
Late S-Corp Election Fix	Missed March 15 Form 2553 Deadline	Rev. Proc. 2013-30 Retroactive Reasonable Cause Relief	Backdates S-Corp to Jan 1

Actionable Execution Protocol: If you forgot to file Form 2553 by March 15 to become an S-Corp for the current tax year, you can write 'FILED PURSUANT TO REV. PROC. 2013-30' across the top of Form 2553 and file it alongside your Form 1120-S return to claim retroactive S-Corp savings for the entire year!