Discussion:S corp salary on SCH SE
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| Revision as of 20:21, 16 February 2008 Rwineland (Talk | contribs) (no sch c done! s) ← Previous diff |
Revision as of 20:41, 16 February 2008 TxSrv (Talk | contribs) (At least SE was) Next diff → |
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| {{ForumReplyPost|UserID=Rwineland|Date=16 February 2008|Text=no sch c done! salary deduction on 1120s was 94% of profits b4 salary ded, so they wouldn't owe much on fica but how about unemployment taxes not paid by s corp? even before salary, profits less than $25K and probably he's hit the ceiling on revenue.}} | {{ForumReplyPost|UserID=Rwineland|Date=16 February 2008|Text=no sch c done! salary deduction on 1120s was 94% of profits b4 salary ded, so they wouldn't owe much on fica but how about unemployment taxes not paid by s corp? even before salary, profits less than $25K and probably he's hit the ceiling on revenue.}} | ||
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| + | {{ForumReplyPost|UserID=TxSrv|Date=16 February 2008|Text=At least SE was done and paid, right? And I assume the 1040 didn't bounce re the odd SE. IRS in an audit would have no net deficiency on the FICA issue (beyond the remaining 6% of "sort-of" distribution). FUTA is small and not our doing either. Fix for future, I would agree also.}} | ||
Revision as of 20:41, 16 February 2008
Discussion Forum Index --> Basic Tax Questions --> S corp salary on SCH SE
Discussion Forum Index --> Tax Questions --> S corp salary on SCH SE
| 16 February 2008 | |
| I know, I know. I've read every thread out there.
Situation: new s corp client. previous cpa included reasonable salary, but no w2, no 1099, no sch c. however, he passed comp onto SCH SE to "keep them legal". client does not keep separate business bank account. Question: before I advise them on either starting payroll or terminating s corp election and maintaining business as llc sch c (small profit/low liability risk anyway), is the prior cpa's way a valid way to keep them paying se tax when they elect not to do payroll correctly OR was this his way of doing less work? they say he did not advise them to start payroll or keep business $ separate. thanks for all your insight. fuzzy from long research hours... | |
Bottom Line (talk|edits) said: | 16 February 2008 |
| Since he didn't advise them to keep money separate OR to start payroll, I'd say he was missing some things. Whether he was trying to do less work or was not properly advising them, I couldn't make a guess. | |
| 16 February 2008 | |
| Whatever the prior accountant's motive, he was wrong. Put the client on the right path. | |
| 16 February 2008 | |
| What % of profit B4 salary deduction was put on Sch C? From the facts re commingling, IRS can argue that 100% of profit was distributed, and tack FICA on the distribution, less what was reported via Sch SE. | |
| 16 February 2008 | |
| no sch c done! salary deduction on 1120s was 94% of profits b4 salary ded, so they wouldn't owe much on fica but how about unemployment taxes not paid by s corp? even before salary, profits less than $25K and probably he's hit the ceiling on revenue. | |
| 16 February 2008 | |
| At least SE was done and paid, right? And I assume the 1040 didn't bounce re the odd SE. IRS in an audit would have no net deficiency on the FICA issue (beyond the remaining 6% of "sort-of" distribution). FUTA is small and not our doing either. Fix for future, I would agree also. | |
