Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 07-12-2014, 06:40 PM
Junior Member
 
Join Date: Mar 2014
Posts: 5
S-corp and payroll

I opened a LLC this year and started consulting.
I intend to be taxes as S-Corp by filing Form 2553 at tax time.

Do I need to run payroll and do W-2 now using quickbooks if I intend to file taxes as S-CORP and not as LLC to save on 50% of FICA?

Should I meet with a CPA now to start on the above.

Thanks



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 07-13-2014, 03:04 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,231
Quote:
Originally Posted by petertheil56 View Post
I opened a LLC this year and started consulting.
I intend to be taxes as S-Corp by filing Form 2553 at tax time.

Do I need to run payroll and do W-2 now using quickbooks if I intend to file taxes as S-CORP and not as LLC to save on 50% of FICA?

Should I meet with a CPA now to start on the above.

Thanks
Do I need to run payroll and do W-2 now using quickbooks if I intend to file taxes as S-CORP and not as LLC to save on 50% of FICA?=========>>>>>>>>Correct;as an s corp owner/EE, you need to receive wage reported on w2 UNLESS the Sc orp takes losses so no income to be paid to an EE.in general, S corps must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation before non-wage distributions may be made to the shareholder-employee. The amount of reasonable compensation will never exceed the amount received by the shareholder either directly or indirectly.So Yyu need to create a W-2 form by filling out form W-2 and giving it to yourself,the employee/owner, by the end of January 2015, and having yourself ,the employer file the summary report W-3 with the IRS.You need to send copy of W2/W3 to SSN. Shareholder-employees are paid a salary, with their wages reported on a W-2 and with FICA taxes already withheld.
Should I meet with a CPA now to start on the above.==========>>It depends; You do not have to use an official tax pro ,cpa/ea or etc ,in order to work on a tax return. You can file your government tax return , payroll taxes or etc, yourself if you really happen to want to. The tax pro can help you deal with the government. You need to be able to find a venue to properly file your business taxes with if you happen to own a business. The venue can be very important to the taxpayer. You need to be able to properly file your business taxes because so many people are dependent upon that business succeeding. You need to be careful when you are filing your own tax return including payroll taxes.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
New S-Corp - Payroll Question jordan8201 S-Corporation 0 05-13-2014 08:56 PM
payroll dpabst Payroll 2 04-27-2014 07:45 AM
Payroll Audit Krishari Payroll 4 12-05-2012 10:38 AM
What are the Important Dates for Payroll Tax For California Payroll Tax Returns for 2012? TaxGuru Payroll 0 01-30-2012 11:33 AM
Is it better to do your own payroll tax returns or hire an outside payroll company? Sabby Sole-Proprietorship 1 07-21-2008 01:02 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning