Most organizations review the performance of their employees on a regular basis (usually annually), for the purposes of determining pay adjustments, promotions, terminations and training requirements. Unfortunately, the very idea of being “appraised”, of having some superior pass judgment on them, is resented by many employees.
As the owner of an S corporation trying to determine a reasonable salary to pay yourself, the question is important — and difficult to answer. The reason: At present, there are no specific regulations, safe-harbor provisions, or minimum wage requirements.
Challenges that merely annoy an established firm often capsize a start-up company. This is especially true in the area of staffing.
According to a study by the Treasury’s Office of Economic Policy, about a third of unemployed workers who were eligible took advantage of the COBRA subsidy to help pay for their health insurance.