Is there any limit for payroll?.

If a corporation is making app 2 mill and wants to give 500k to 4 employees or 2 mill to one employee who apparently do not have qualification to receive this much.

CAN THAT COMPANY GIVE THIS MUCH TO THESE EMPLOYEES.

Surely company will take care of all payroll liabilities.

Thanks

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What type of corp? Are employees stockholders? Are they related?

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>>CAN THAT COMPANY GIVE THIS MUCH TO THESE EMPLOYEES.<<

Yes; there's no limit on salaries.

However, there is a limit [ordinary, necessary and reasonable] on how much of the salary would be tax-deductible by the employer.

I'm not sure what you mean by "...who apparently do not have qualification to receive this much" but I suspect you're saying that the proposed salaries are more than the employees' services were worth, which IRS would use to disallow the deduction for the part that exceeds what's "ordinary, necessary and reasonable..."

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>>there's no limit on salaries<<

Unfortunately I can't get my boss to agree with this enlightened viewpoint.

A corporation can not avoid the double taxation of dividends by paying excessive salaries.

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