Discussion:Section 125 Wages, reporting on Corp returns
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Discussion Forum Index --> Advanced Tax Questions --> Section 125 Wages, reporting on Corp returns
Discussion Forum Index --> Tax Questions --> Section 125 Wages, reporting on Corp returns
| 29 May 2008 | |
| I have always included the Section 125 (tax exempt) wages in "wages" on the corp return. The wages deducted on the return do not equal the SS wages reported on the W-3, but I don't care. Or should I? Anyone incude it in employee benefits so the wages deducted tie to the W-3? | |
TheTinCook (talk|edits) said: | 29 May 2008 |
| I put it in as employee benefits. | |
| 30 May 2008 | |
| I believe that Sec. 125 benefits are considered to be employee benefits. The salary reduction amount is not really a wage.
Also, elective deferrals on 401(k) plans should be deducted on the pension and profit-sharing line. | |
| 30 May 2008 | |
| I've never deducted the elective deferrals on that line. I guess my reasoning is that it is not an employer expense. The other reason is that it wouldn't match up with financial statements, since I want wages to be the gross amount for F/S purposes. Do you have a source for that treatment for the T/R? | |
| 30 May 2008 | |
| I didn't read it that way. It said to enter the deductions for pension, etc. Since I am including the elective deferrals in the employee gross wages, then think just the employer portion can go here. | |
| 30 May 2008 | |
| If you care to look at a third opinion, see PPC's 1120 and 1120S Deskbooks. | |
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