HelloNation Publishes David Riggs Article on S Corp Salaries and Distributions

HelloNation published an article featuring accounting expert David Riggs on how S corporation owners should set their salary and take shareholder distributions, PR Newswire reported on November 1, 2026. Riggs is described as an Accounting Expert of York, Pennsylvania. The article covers payroll tax treatment, how a reasonable salary is determined, and the records owners should keep.

How Riggs Explains S Corp Payroll Taxes

The article states that working S corporation owners are both shareholders and employees, and their compensation can come as wages through payroll and as shareholder distributions. Salary carries payroll taxes, including Social Security and Medicare, while distributions generally do not, the article says. It notes that owners cannot simply replace reasonable wages with distributions and must be paid for the services they provide.

No single dollar amount fits every owner, according to the article. An s corp reasonable salary depends on the work performed and what comparable businesses pay for similar services. Training, experience, responsibilities and time devoted to the business are listed as relevant factors, along with business size, complexity, revenue and profits. The article describes approaches that compare market wages or assign compensation to each role an owner handles, such as management, sales, technical work and bookkeeping.

Riggs addresses what happens when salary is set too low. "The IRS may reclassify distributions as wages," the article states, which can leave owners facing back payroll taxes, interest and penalties. The article also cautions that percentage splits, such as 60 percent salary and 40 percent distributions, are not official IRS guidelines, and that compensation decisions should reflect business facts rather than a fixed formula.

What HelloNation's Records Show

HelloNation is a Rochester-based digital media platform, operated by parent CGI Digital, that produces city- and neighborhood-level video magazines and editorial content across all 50 U.S. states, according to akta.pro company records. The same records describe its revenue model as a proprietary "edvertising" approach that charges local professionals for expert-driven content syndication through PR Newswire, GlobeNewswire and integrated Redfin housing data. The records list CEO and founder Bob Bartosiewicz as its leader and estimate revenue at $1 million-$5 million.

Earlier HelloNation Expert Articles

HelloNation has published a series of expert-contributor articles, each distributed through PR Newswire. On November 1, 2026, retirement planning expert Janie Kelly explained required minimum distribution rules for IRAs and 401(k) plans, with the first withdrawal due by April 1 and later ones by December 31. The same day, real estate expert Matt Nuzie of Shelton, Connecticut, explained how comparative market analysis uses recent sales of similar homes to estimate a listing price. Pest control expert Kent Nielsen also explained in a November 1, 2026 article how to distinguish termite swarmers from flying ants.

Where to Find the Article

The HelloNation article, "How the IRS Views S Corp Owner Salary and Shareholder Distributions," features Riggs' insights and is available through the HelloNation website.