Discussion:Reporting Employee Leasing Cost on 1120
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Discussion Forum Index --> Tax Questions --> Reporting Employee Leasing Cost on 1120
Msmith7305 (talk|edits) said: | 3 February 2006 |
| Can anyone guide me to definitive rules or requirements as to the proper way to report the cost an employer pays for his leased employees. Some of my fellow CPAs report it as part of miscellaneous expenses on the 1120 and some put the salary component on the 1120 lines for wages. The "miscellaneous expense" proponents claim they don't want to put it on the salaries line as no payroll returns are filed (leasing company responsible). The "salary" line people say they put it there because it looks funny not to have any wages listed.
Has anyone seen or read what the IRS official position is (if there even is one)? | |
| 3 February 2006 | |
| Under Internal Revenue Code ยง 414, the leased employees are treated as employees of the service recipient for fringe benefit and retirement plan purposes only. They are treated as employees of the leasing company for all other purposes. | |
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