Question

TurboTax Business Employee Compensation & Benefits

Forum|Forum|4 years ago
March 10, 2022
1 reply
0 views

Where it asks for Employee Compensation, should it just be their net income after tax? My concern is it's not going to match the W-2 employee reference statement. But if I use gross, then enter the tax withholding (employee and employer) wouldn't we be double counting the tax withholding?

TurboTax Business Windows

M

MinhT1

For Employee compensation, you should report the gross amount of wages paid to your employee.

The amount withheld from your employee's check is not entered on the tax return. On the tax return, you only enter the employer's portion of Social security and Medicare tax as Payroll taxes.

There is no double counting of expenses if you proceed in this way.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"