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February 22, 2020
Question

I am self employed with 4 employees. Where do I enter the wages,the federal income tax withheld and social security tax?

  • February 22, 2020
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Do I enter the federal taxes paid in the other income taxes paid portion of return?

1 reply

February 22, 2020

As you go through the Schedule C entries, there will be a separate category for Wages paid to your employees.  Use this category to enter the gross pay for your employees.  What your employees take home in their paycheck is their net pay (gross pay minus taxes withheld)

 

There is also a separate category for Taxes and Licenses where you will report the business share of Social Security tax, Medicare tax, and any unemployment taxes paid for your employees.  

 

The Federal income taxes withheld plus any Social Security tax and Medicare tax withheld from your employees' pay checks is not a deduction for the business and will not be entered anywhere on the tax return.  These amounts were deducted from what you paid your employees and remitted to the government.  You have already deducted the gross pay for each employee.

 

 

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