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Posted by Arnie on December 29, 2006, 8:52 pm
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I've read a few times that CEOs elect to draw a salary of $1
now and then (of course they probably get a $3 million
bonus). I assume that the CEO still qualifies as a full time
employee for things like health insurance, but clearly $1.
is less than the minimum wage.
Can a CEO elect to make less than the minimum wage and still
be considered a full-time employee? Or do benefits count
toward minimum wage conditions?
Tommy
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Posted by Steve Pope on December 30, 2006, 2:48 pm
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> I've read a few times that CEOs elect to draw a salary of $1
> now and then (of course they probably get a $3 million
> bonus). I assume that the CEO still qualifies as a full time
> employee for things like health insurance, but clearly $1.
> is less than the minimum wage.
>
> Can a CEO elect to make less than the minimum wage and still
> be considered a full-time employee?
Sure, they are exempt employees. The Wage-Hour Act (I think
that's what it's called, or once was called) does not
apply to them.
Steve
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Victor Roberts on December 30, 2006, 2:48 pm
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> I've read a few times that CEOs elect to draw a salary of $1
> now and then (of course they probably get a $3 million
> bonus). I assume that the CEO still qualifies as a full time
> employee for things like health insurance, but clearly $1.
> is less than the minimum wage.
>
> Can a CEO elect to make less than the minimum wage and still
> be considered a full-time employee? Or do benefits count
> toward minimum wage conditions?
See response to your previous question on this subject.
--
Vic Roberts
Replace xxx with vdr in e-mail address.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Paul Thomas on December 30, 2006, 2:48 pm
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> I've read a few times that CEOs elect to draw a salary of $1
> now and then (of course they probably get a $3 million
> bonus). I assume that the CEO still qualifies as a full time
> employee for things like health insurance, but clearly $1.
> is less than the minimum wage.
>
> Can a CEO elect to make less than the minimum wage and still
> be considered a full-time employee? Or do benefits count
> toward minimum wage conditions?
There are many small business owners who, at times, do not
make minimum wage, or even take a salary, but work their
@sses off seven days a week. It's one of the risks or being
in business to begin with - the risk of loss.
In cases like that, we make notes in the minute book that
the salary is "to be paid" at a later date. Then we hope
the business improves so it can do just that. One would
have to look at the suitability of paying for benefits when
the business is in a cash crunch. But there may be audit
troubles if there is no salary to individuals who are
receiving "employee" benefits.
And no, I've never seen a W-2 for $1.
--
Paul A. Thomas, CPA
Athens, Georgia
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by A.G. Kalman on December 31, 2006, 11:50 pm
Please log in for more thread options Arnie wrote:
> I've read a few times that CEOs elect to draw a salary of $1
> now and then (of course they probably get a $3 million
> bonus). I assume that the CEO still qualifies as a full time
> employee for things like health insurance, but clearly $1.
> is less than the minimum wage.
>
> Can a CEO elect to make less than the minimum wage and still
> be considered a full-time employee? Or do benefits count
> toward minimum wage conditions?
>
> Tommy
Qs & As on the minimum wage: http://www.dol.gov/esa/minwage/q-a.htm
Who is exempt:
http://www.dol.gov/elaws/esa/flsa/screen75.asp
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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