Salary/Dividend Split - How Does It Impact Social Security Eligibility?

[Bryan Hancock]

If one sets up a LLC and takes a salary/dividend split via their LLC does all of the money get counted to determine eligibility to continue to receive social security payments? Or....does just the salary portion get counted as wages for eligibility?

Hopefully that makes sense.

[Account Closed]

Brian, your social security benefit at retirement is based on earned income over the individuals lifetime. Self employment income and wages will be considered. Dividends are not included.

Periodically you should review the earnings and self employment wages reported to the SSA. I have client with W-2 earnings that didn't get added in because the employer failed to report the employment taxes.