S-corp owner salary stub template
S-corporation owners working in the business must pay themselves a reasonable W-2 salary. This stub records that wage portion correctly.
Salary vs. distributions for S-corp owners
If you own and actively work in an S-corporation, the IRS requires you to take a reasonable salary as W-2 wages — with payroll withholding for income tax, Social Security, and Medicare — for the services you provide. Any additional cash you pull out of the company is a distribution, not wages.
This stub captures the salary portion: gross wages for the period, federal/state withholding, FICA, and net pay. Distributions belong on a separate ledger because they are taxed differently and do not appear on a W-2.
Getting this split right matters: too low a salary against high distributions is a classic IRS audit trigger. Use this stub to keep the wage record clean and consistent with your annual W-2.
Honest, legitimate use only
These templates are for documenting income you actually earned. They are not 'fake stub' tools. We don't guarantee that any lender or landlord will accept a self-prepared document, and we don't recommend submitting one without supporting evidence like a tax return and bank statements.
Frequently asked questions
Do S-corp owners get pay stubs?
Yes. The wage portion you take as W-2 generates a normal payroll stub with withholding and FICA. Distributions don't appear on the stub.
What's a 'reasonable salary' for an S-corp owner?
The IRS expects a salary comparable to what you'd pay a third party for the same work. Industry comp surveys and prior tax filings are the usual benchmarks.
Can I skip salary and just take distributions?
No. If you provide services to the S-corp, the IRS expects W-2 wages first; under-paying salary against large distributions is a well-known audit risk.