Hello,
There is a partnership with three business partners who own equal shares of the business. However, they all put different amounts of hours of work into the business, and they are paid based on their involvement in the business, as they have agreed. The tax agent I am working with is saying that partners can get wages in a partnership, and this is how this difference in the amount of money the partners are making will be accounted for.
I am a little confused about this: I thought that partners cannot be employed in the partnership. However, upon researching, I have found that partners can, indeed, get partner salaries, they just won't be tax deductible for the partnership. So my question is, how do I go about paying the partners salaries? Would I need to treat them as other employees, pay superannuation and PAYG? Or are there other rules that apply for partners? Thank you!
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