I have a friend who had to create a corporation (at the end of 2007) so that she could receive payments for work she does from home. She and her husband are the only shareholders, but her husband doesn't do any work for the corporation. She has a business checking account for the corporation, but she has been making withdrawals and making debit purchases for non-business related items. YTD, she has not made any estimated tax payments for the corporation, nor for any monies she has taken from the corporation for her personal use. Should these personal withdrawals be considered as wages for her? And if so, should this be considered as salary expense to the corporation? Will she have to pay federal & state unemployment taxes in addition to FIT & FICA?