I just had a NYS DOL audit for 1 of my clients. My client is an S corporation with 2 shareholder's/Officers. My client operates a small retail store not making much money. The business has been open for 3 years. (same as the audit period). The operations are poor, the officer's have not taken much in the form of payroll. (-0- payroll in year 1, and approx. 5k in year 2 & 3) there were no other payments to the shareholder/officers. (no loans or distributions) The store is open for approximately 70 hours per week. The auditor stated that the officer's need to pay themselves at least the minimum wage amount. It doesn't matter that the business is not profitable. therefore there will be an assessment based on that. The assessment is small, however it doesn't seem correct. I can not find any authority contradicting the auditors position. Does anyone know where I could find a definitive answer.
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Richard Trisciuzzi
Nesconset NY
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