Only shareholders who own greater than 10% of an S corporation's stock are treated as partners and,thus,as nonemployees for fringe benefit treatment.

Question

Quizplus · Accepted Answer

Shareholders of an S corporation are generally treated as employees for fringe benefit purposes, regardless of their percentage of ownership. There is no threshold of ownership that triggers a change in their classification to nonemployee.

Only Shareholders Who Own Greater Than 10% of an S