Will paying myself only shareholder distributions instead of payroll, and using the new 20% QBI deduction on my QBI of $300k save me more taxes under the new federal tax plan, and allow me to eliminate payroll for my single employee (me) California S-corp?
I am the only employee of my California S-corp. I began using ADP last year to do semi-monthly payroll, to save a little in taxes (~$2k).
I want to eliminate my time spent dealing with payroll, ADP, and the California EDD.
Under the new federal tax bill, will a change to pass-through entities like, S-corp, can I now stop doing payroll and just pay myself "shareholder distributions", deduct 20% of my QBI (Qualified Business Income) and simply pay self-employment tax (quarterly)?
My QBI will be about $300k. My S-corp is for my software consulting business.