Labor Day weekend usually means BBQs, poolside relaxation, and soaking up the last of summer. But for S corporation owners, it’s also the perfect time to fire up something else: your Q3 estimated tax planning.
As we enter the last month of quarter 3, now is the time to review your year-to-date financials, calculate your anticipated federal and state tax liability, and make sure your reasonable compensation is properly documented. Why? Because how you split salary vs. distributions affects both your payroll taxes and your estimated payments.
And with the One Big Beautiful Bill Act (OBBB) introducing new opportunities for deductions and credits, incorporating those strategies into your Q3 planning could mean real savings—if you take the time to plan now.
Here’s how to use this long weekend wisely (between flipping burgers):
- Get your books in order. Without clean financials, you’re planning blind.
- Run a reasonable compensation analysis. RCC reports help you stay IRS-compliant and optimize the balance between salary and distributions.
- Apply OBBB strategies. From expanded deductions to new credits, these provisions can lower your Q3 liability.
So before you head for seconds at the grill, carve out some time this Labor Day weekend to make sure your tax planning is just as satisfying as your BBQ.
At RCC, we make it simple to generate IRS-compliant compensation reports that accountants and business owners can rely on. Pair that with proactive tax planning, and you’ll avoid any nasty surprises when quarter 3 wraps up.
Ready to tighten up your Q3 planning? Explore how our reports can support your tax strategy today.
