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Inside Entrepreneurship: Details critical in deferred salaries

Q: I’m starting up a company with two other people. During the first year of operations, can we accrue part of our salaries for payment at a later date? If so, should this be set up as a formal loan with interest or is it good enough to just call it accrued salary? As the company’s only officer, would I be personally liable to pay the accrued salaries if the company fails?

Withholding for Medicare and Social Security taxes are due when the employee has earned the wage, not just when the employee is paid in cash for the work.

By SUSAN SCHRETER
SPECIAL TO THE P-I

Full Story: http://seattlepi.nwsource.com/business/396274_schreter16.html

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