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I filed business taxes (LLC as S-Corp) with a reasonable wage but no withholdings or W-2. Returns were accepted, but I need guidance on next steps. I had input W-2 wages.

Forum|Forum|1 year ago
March 4, 2025
2 replies
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I was thinking that if I put down W-2 wages, with no taxes taken out, that TurboTax would create a W-2 for me to use for personal taxes. It makes sense that I was wrong, but I need help to determine the best path forward. Should I go back and create a W-2 for 2024 and file any necessary documents or is there another acceptable way not using W-2 income.

Best answer by ThomasM125

I think you mean you reported officer wages on line 7 of your form 1120-S but didn't actually prepare and submit the W-2 form to the IRS. If so, the best thing to do would be to prepare the W-2 and submit it. However, it will be subject to penalties since it will be filed late. You can protest that though by submitting an explanation of what happened if the IRS sends you a penalty notice and it is possible the IRS will reverse any penalties assessed.

You can use TurboTax Quick Employer Forms to prepare the W-2 form. You can complete Form 944 to report and pay your social security, Medicare and income taxes. You can use Form 940 to report and pay your federal unemployment taxes. You would have to check with your state department of revenue to see what your reporting requirements are for state unemployment taxes.

You will see a link to Quick Employer Forms on the File menu option in TurboTax Business, look for Create 1099/W2.

A

AmeliesUncle

If the business paid you wages, the business needs to file a W-2, quarterly 941s, Federal Unemployment, State Unemployment and maybe other state requirements. They are late and there will likely be penalties and interest for not filing and paying them on time.

TurboTax has the associated program to file the W-2, but not any of the other required filings. I suggest you go to a good tax professional or hire a payroll company to correct the mistake and to start doing things correct from now on.

As a side note, Social Security and Medicare taxes are required to be withheld from the wages/salary. If that was not done, the business can either have you (the employee) reimburse them or the company can pay for them (but then they need to "gross up" the amounts, which would mean the amount you put on the 1120-S would be wrong).

In my opinion, corporate taxes are not a DIY project and you should go to a good tax professional.

T

ThomasM125Answer

I think you mean you reported officer wages on line 7 of your form 1120-S but didn't actually prepare and submit the W-2 form to the IRS. If so, the best thing to do would be to prepare the W-2 and submit it. However, it will be subject to penalties since it will be filed late. You can protest that though by submitting an explanation of what happened if the IRS sends you a penalty notice and it is possible the IRS will reverse any penalties assessed.

You can use TurboTax Quick Employer Forms to prepare the W-2 form. You can complete Form 944 to report and pay your social security, Medicare and income taxes. You can use Form 940 to report and pay your federal unemployment taxes. You would have to check with your state department of revenue to see what your reporting requirements are for state unemployment taxes.

You will see a link to Quick Employer Forms on the File menu option in TurboTax Business, look for Create 1099/W2.

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