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Old 02-25-2015, 11:32 PM
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Hi. My husband was in an LLC with 2 partners. In the beginning of 2014 my husband received 4 paychecks (basically employee paychecks) and payroll deductions were withheld including federal and state. We received his k1 today but no where is there anything stating the amount withheld from those paychecks. I am cometely confused about what to do. The CPA said all income was guaranteed because the company closed which I don't believe that (I am an accountant).

How do I found out amount of income taxes that were paid to federal and state in order to reflect this on our 2014 income taxes? We never got paycheck stubs and in 2013 he received paychecks like above and he got a w2 instead of a k1.

What is my next step?

Thank you



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Old 02-26-2015, 10:35 PM
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Hi. My husband was in an LLC with 2 partners. In the beginning of 2014 my husband received 4 paychecks (basically employee paychecks) and payroll deductions were withheld including federal and state. We received his k1 today but no where is there anything stating the amount withheld from those paychecks. I am cometely confused about what to do. The CPA said all income was guaranteed because the company closed which I don't believe that (I am an accountant). =====>Unless the LLC elcted to be taxed as an S or C corp, no payroll taxes need to be withheld as partners are NOT employees of the LLC. LLCs, however, when LLC partners,owners hire emplyees, with any employer, LLC must withhold income tax and payments for Social Security and Medicare contributions from each employee's paycheck. what I mean is that the LLC owners/members pay self-employment taxes on all of the LLC’s profits,on Sch SE of 1040. they may deduct half 50% of their self-employment tax from their AGI on 1040 line 27. Though this will not affect their self-employment tax rate, it will affect the amount of their income subject to income tax and save them some money.

How do I found out amount of income taxes that were paid to federal and state in order to reflect this on our 2014 income taxes? We never got paycheck stubs and in 2013 he received paychecks like above and he got a w2 instead of a k1. =======>>As said partners are not employees so NO w2s UNLESS you elected to be taxed as an S or a C corp; your LLCs do not pay taxes on business income; instead, the LLC owners each pay taxes on your share of the profits on our personal income tax returns with Schedule E attached. Each LLC member's share of profits and losses, called a distributive share, should be set out in the LLC operating agreement.

What is my next step?=======>>>>As mentioned above;



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Old 02-27-2015, 12:22 AM
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I know with a LLC owners are not employees. I am an accountant. His paycheck were set up to withdrawal payroll deductions. For the tax year of 2013, for some crazy reason my husband and one partner received a W2 and seen as emploees and I have no idea why this happened. We expected a k1 for 2013 tax year but got a w2. This we expected a w2 and got a k1. His paychecks in 2014 has payroll deductions and the fed and state tax deductions are not listed a ywhere on the k1. The reasons for the k1 or w2 don't matter. He paid fed and star in one taxes and there is not any tax documents. I don't know about you but I don't give the IRS free money.

How do I find out the Income tax amount paid? What do we do? We paid taxes but do not have any documents.






QUOTE=Wnhough;19957]Hi. My husband was in an LLC with 2 partners. In the beginning of 2014 my husband received 4 paychecks (basically employee paychecks) and payroll deductions were withheld including federal and state. We received his k1 today but no where is there anything stating the amount withheld from those paychecks. I am cometely confused about what to do. The CPA said all income was guaranteed because the company closed which I don't believe that (I am an accountant). =====>Unless the LLC elcted to be taxed as an S or C corp, no payroll taxes need to be withheld as partners are NOT employees of the LLC. LLCs, however, when LLC partners,owners hire emplyees, with any employer, LLC must withhold income tax and payments for Social Security and Medicare contributions from each employee's paycheck. what I mean is that the LLC owners/members pay self-employment taxes on all of the LLC’s profits,on Sch SE of 1040. they may deduct half 50% of their self-employment tax from their AGI on 1040 line 27. Though this will not affect their self-employment tax rate, it will affect the amount of their income subject to income tax and save them some money.

How do I found out amount of income taxes that were paid to federal and state in order to reflect this on our 2014 income taxes? We never got paycheck stubs and in 2013 he received paychecks like above and he got a w2 instead of a k1. =======>>As said partners are not employees so NO w2s UNLESS you elected to be taxed as an S or a C corp; your LLCs do not pay taxes on business income; instead, the LLC owners each pay taxes on your share of the profits on our personal income tax returns with Schedule E attached. Each LLC member's share of profits and losses, called a distributive share, should be set out in the LLC operating agreement.

What is my next step?=======>>>>As mentioned above;[/quote]



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Old 02-27-2015, 01:53 AM
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I GUESS the llc bookkeeper/accountant needs to file corrected 941's/ state quarterly forms, schedules and members need to get a refund of all taxes paid. if there were an audit it seems it would be unlikely that there would be a change in the overall correct amount of tax. A llc can deduct its employees' wages as a business expense, reducing the company's taxable profit. As partnerships increasingly offer equity interests to retain valued employees that may be unaware of the payroll tax consequences of receiving a partnership interest. Many partnerships continue to treat those former employees holding interests as employees for payroll tax purposes, even though the IRS clearly believes these employees/members are not reg employees. If the IRS discovers this treatment, the possible consequences go far beyond employment tax liability.

No; on a Sch K-1 of 1065, there will be no tax withheld indicated. Sch K1 of 1065 just reports your share of distributive MMLLC share of income. The Sch is prepared by the LLC to distribute to owners/members to outline their portion of the income, loss, and deductions.You need to report the income on Schm K1 of 1065 on your Sch E/1040 or whatever.The MMLLC, or partnership are responsible for distributing the K-1 forms to members/partners Not only do you need to report net profit or loss, but some financial data must be tracked individually.The MMLLC is considered pass-through tax entities, meaning that all of the profits and losses of the partnership pass through the business to the partners/members and they need to pay taxes on their share of the profits or deduct their share of the losses on their 1040s as said above.I am an IRS Enrolled Agent.

Because there is no employer to compute and withhold income taxes, each partner/memebr must set aside enough money to pay taxes on his share of annual profits. Partners must estimate the amount of tax they will owe for the year and make payments to the IRS and usually to the appropriate state tax agency each quarter ; unless the members/ partners make an agreement. The IRS treats each memeber as though he received his distributive share each year. This means that you must pay taxes on your share of the partnership's profits ; total sales minus expenses regardless of how much money you actually withdraw from the business.Aslongas you are actively involved in running the MMLLC, in addition to income taxes, the IRS requires you to pay SECA taxes reported on Sch SE of 1040 on all the MMLLC profits allocated to you. Self-employment taxes consist of contributions to the Social Security and Medicare programs, similar to the payroll taxes employees must pay.However youc an deduct half of it on line 27 I guess on 1040. A guaranteed draw payment is used as the LLC equivalent of salary to managing members. This type of payment has certain tax benefits. The IRS treats guaranteed payments as wages and requires members to pay annual (not quarterly) SECA taxes and make estimated tax payments as mentioned above.since no employer withholds these taxes from partners' paychecks, partners must pay them with their regular income taxes. Also, partners must pay twice as much as regular employees, because employees' contributions are matched by their employers. However, partners can deduct half of their self-employment tax contribution from their taxable income, which lowers their tax bill a bit. So for youer spouse’s payroll taxes already paid , youneed to contact the bookkeeper/the MMLLC accountant for help.



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Old 02-27-2015, 04:04 AM
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I don't know if I'm not explaining it clearly or you're not understanding. I know about LLCs and owners not being employees. This has nothing to do with my issue.

I nor anyone else can change what happened in 2014 because it's Feb 27, 2015. Payroll deductions were withheld out of 2014 paychecks and sent to the IRS. I need advice on getting tax documents and/or amounts in order to put that on our 2014 tax return.

We received a K1 for tax year 2014 and I cannot see anywhere on the k1 showing the amount withheld out of 2014 paychecks.

So again, it is not about 2015. Money was deducted and sent to the IRS in 2014. How do I find out the amount that was withheld for tax year 2014.

The following has nothing to do with my question but the company has closed. I DO NOT need to worry about or discuss any thing to do with the 2015 tax year.

Let's look at this another way. Forget the LLC company. Forget the k1. My husband worked in 2014. Payroll taxes were withheld from his paycheck. The employer did not provide tax documents showing the total amout withheld from his pay. How can I get or where can I get the total amount withheld from his. 2014 tax year income.

Taxes were withheld and sent to the IRS in 2014 because we knew when the company was established we would have to pay taxes to the IRS for our portition of the company taxes. I need that amount in order to file our 2014 income tax return or someone who can tell me if those tax payments were or should have been reflected in the K1.


If you are unable help me please find me someone who can.

Quote:
Originally Posted by Wnhough View Post
Hi. My husband was in an LLC with 2 partners. In the beginning of 2014 my husband received 4 paychecks (basically employee paychecks) and payroll deductions were withheld including federal and state. We received his k1 today but no where is there anything stating the amount withheld from those paychecks. I am cometely confused about what to do. The CPA said all income was guaranteed because the company closed which I don't believe that (I am an accountant). =====>Unless the LLC elcted to be taxed as an S or C corp, no payroll taxes need to be withheld as partners are NOT employees of the LLC. LLCs, however, when LLC partners,owners hire emplyees, with any employer, LLC must withhold income tax and payments for Social Security and Medicare contributions from each employee's paycheck. what I mean is that the LLC owners/members pay self-employment taxes on all of the LLC’s profits,on Sch SE of 1040. they may deduct half 50% of their self-employment tax from their AGI on 1040 line 27. Though this will not affect their self-employment tax rate, it will affect the amount of their income subject to income tax and save them some money.

How do I found out amount of income taxes that were paid to federal and state in order to reflect this on our 2014 income taxes? We never got paycheck stubs and in 2013 he received paychecks like above and he got a w2 instead of a k1. =======>>As said partners are not employees so NO w2s UNLESS you elected to be taxed as an S or a C corp; your LLCs do not pay taxes on business income; instead, the LLC owners each pay taxes on your share of the profits on our personal income tax returns with Schedule E attached. Each LLC member's share of profits and losses, called a distributive share, should be set out in the LLC operating agreement.

What is my next step?=======>>>>As mentioned above;



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Old 02-27-2015, 07:33 AM
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Quote:
Originally Posted by Marie2015 View Post
I don't know if I'm not explaining it clearly or you're not understanding. I know about LLCs and owners not being employees. This has nothing to do with my issue.

I nor anyone else can change what happened in 2014 because it's Feb 27, 2015. Payroll deductions were withheld out of 2014 paychecks and sent to the IRS. I need advice on getting tax documents and/or amounts in order to put that on our 2014 tax return.

We received a K1 for tax year 2014 and I cannot see anywhere on the k1 showing the amount withheld out of 2014 paychecks.

So again, it is not about 2015. Money was deducted and sent to the IRS in 2014. How do I find out the amount that was withheld for tax year 2014.

The following has nothing to do with my question but the company has closed. I DO NOT need to worry about or discuss any thing to do with the 2015 tax year.

Let's look at this another way. Forget the LLC company. Forget the k1. My husband worked in 2014. Payroll taxes were withheld from his paycheck. The employer did not provide tax documents showing the total amout withheld from his pay. How can I get or where can I get the total amount withheld from his. 2014 tax year income.

Taxes were withheld and sent to the IRS in 2014 because we knew when the company was established we would have to pay taxes to the IRS for our portition of the company taxes. I need that amount in order to file our 2014 income tax return or someone who can tell me if those tax payments were or should have been reflected in the K1.


If you are unable help me please find me someone who can.
sorry for that; i guess you needd to contact a CPA/ an IRS EA inyour llocal area for more accurate help in detail.



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