I own an S corp. I didn't setup payroll. So I won't be receiving a w-2. I made withdrawals and have paid esrumtaed tax payments. How do I report this on my 1120s?

Forum|Forum|7 years ago
June 1, 2019
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I own an S Corp and have taken salary. I never setup payroll be a use I was told that all I had to pay was self employment tax by making estimated tax payments quarterly. Now I found out I had to setup payroll for wages. My question is how do I report the wages and estimated tax payments made on my 1120s return for next year. Is it too late to setup payroll now and pay payroll tax ?

TurboTax Business Windows

Best answer by bwa

I would report the withdrawals, to the extent they are equal to reasonable wages, as salary for the last quarter of 2016 on appropriate payroll tax returns. You may have to find a local tax professional to help you with it, but the change needs to be made so you might as well start now.

B

bwaAnswer

Employee

I would report the withdrawals, to the extent they are equal to reasonable wages, as salary for the last quarter of 2016 on appropriate payroll tax returns. You may have to find a local tax professional to help you with it, but the change needs to be made so you might as well start now.

H

hsolis328Author

Employee

Thanks BWA,

I understand that the employment taxes were supposed to be paid on a monthly basis. And they were not. So, when I prepare the payroll return for the 4th quarter what do I put for Oct, Nov ? $0 regarding the payroll tax paid. So it's okay to pay the payroll tax owed on the reasonable salary I paid myself in the month of December. So on the fourth quarter payroll return only December will have payroll tax paid right ?