It can get confusing on how much to pay yourself, especially when your income can quickly fluctuate from month to month!
A good starting point for paying yourself is to take your Net Income (sales - expenses) and:
- pay yourself 50-75%
- Save for taxes 15-25%
- Pay self/pay off additional debt remaining amount
Easily plug these numbers into the owner pay calculator!
NOTE: These numbers are just suggestions!! It can vary from business to business and state to state. But it is a great starting point.
If you are taxed as an Scorp you need to be paying yourself via payroll and these numbers do not apply to you!
