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Ok, I am sending you a link to read it please. Sometimes S-Corp has no enough money just has for covering expenditure ( assume no loan no debt to lender..) basically they formed S-Corp wrongly since is not wealthy better stayed Sch C than S-Corp what do you think about paystub, nothing since no money right?
Of course when shareholder perform service can have paystub but how? no money. Do you think about a big wealthy company or if we have other non wealthy company? Do not think about start-up company and other they have a lot PP&E.
Assume gross receipt $32000, Expenses without wages( sole shareholder - no employees) $28000 net income $4000 but wages per RCreport can be $6000 per month, so what happens at this situations? and so no payroll, no distribution . Please do not debate in continue about why they formed S-Corp, I did not suggest them, and if I knew them before definitely I told them do not form it.
If you disagree with Rcreport's view I am glad to hear and learn here since I follow their articles.
https://rcreports.com/blog/what-if-an-s-corp-owner-can-t-afford-to-pay-reasonable-compensation/
By the way thanks a lot to share your point of view.