payroll taxes - Page 3

tropicgirl · 12-15-2005, 01:48 PM

As a sole, you can take whatever you want at anytime, but you cant justify it as an "expense". At the end of the year you are going to be taxed on your Total Revenue-Total Expenses. You will be taxed at an individual rate.

If you give yourself a 1099, you are going to pay a self-employment tax at the end of the year, which is going to include social security and FICA. This keep you from having a "negative effect" when retiring.

And as a corporation, yes you are going to have to pay taxes as an employee.
You may make deposits weekly but you still only File 941 quarterly.

totaleclipse1 · 12-15-2005, 02:37 PM

Thanks everyone... soosamm....muahhhh .. love ya for the info

SunSplash-HI · 12-15-2005, 06:09 PM

We are an S-Corp as well. I draw a smaller salary and then I take a portion of leftover profit (assuming there is some) at year end. Since S-Corp profit is passed through to the individual tax, I don't have to pay payroll taxes or any other taxes again (just personal income tax) on the profit taken at year-end.

As SooSamm said, the IRS frowns upon us not taking a salary at all since they would see this as a clear attempt to avoid paying FICA and other payroll taxes, so some salary is best to keep the IRS watchdogs at bay. It doesn't have to be a huge salary. However, if you have a salary of only $5k for the year and then take $50k out as proft at year end, it would be obvious that you were just trying to avoid paying payroll taxes. I don't think there are any specific rules on what proption should be salary vs year-end pass-through so it's somewhat of a guess on what's reasonable.

SooSamm · 12-15-2005, 10:20 PM

Whomever left me the negative reputation with the quote of

"informing you of your ignorance" with a smilee face behind it...

Thank you for the compliment and the negative mark..

I hope you found my informitive post to be of some help in your business...

Happy Holidays, Soo

pcstutsman · 12-29-2005, 08:24 PM

ugh i'm lost lol

12-15-2005, 01:48 PM	#21 (permalink)
tropicgirl I love Derf!! Join Date: Jul 13 2003 Location: middle america Posts: 1,018 Rep Power: 8	Re: payroll taxes As a sole, you can take whatever you want at anytime, but you cant justify it as an "expense". At the end of the year you are going to be taxed on your Total Revenue-Total Expenses. You will be taxed at an individual rate. If you give yourself a 1099, you are going to pay a self-employment tax at the end of the year, which is going to include social security and FICA. This keep you from having a "negative effect" when retiring. And as a corporation, yes you are going to have to pay taxes as an employee. You may make deposits weekly but you still only File 941 quarterly. Last edited by tropicgirl; 12-15-2005 at 01:51 PM.

12-15-2005, 02:37 PM	#22 (permalink)
totaleclipse1 I love Derf!! Join Date: Feb 21 2005 Location: NEw York Age: 31 Posts: 1,941 Rep Power: 11	Re: payroll taxes Thanks everyone... soosamm....muahhhh .. love ya for the info __________________ OFFICIALLY MRS. V !! HOLLA!

12-15-2005, 06:09 PM	#23 (permalink)
SunSplash-HI Join Date: May 3 2004 Location: West Posts: 124 Rep Power: 5	Re: payroll taxes We are an S-Corp as well. I draw a smaller salary and then I take a portion of leftover profit (assuming there is some) at year end. Since S-Corp profit is passed through to the individual tax, I don't have to pay payroll taxes or any other taxes again (just personal income tax) on the profit taken at year-end. As SooSamm said, the IRS frowns upon us not taking a salary at all since they would see this as a clear attempt to avoid paying FICA and other payroll taxes, so some salary is best to keep the IRS watchdogs at bay. It doesn't have to be a huge salary. However, if you have a salary of only $5k for the year and then take $50k out as proft at year end, it would be obvious that you were just trying to avoid paying payroll taxes. I don't think there are any specific rules on what proption should be salary vs year-end pass-through so it's somewhat of a guess on what's reasonable.

12-15-2005, 10:20 PM	#24 (permalink)
SooSamm Join Date: Jun 2 2003 Location: Florida Posts: 624 Rep Power: 8	Re: payroll taxes Whomever left me the negative reputation with the quote of "informing you of your ignorance" with a smilee face behind it... Thank you for the compliment and the negative mark.. I hope you found my informitive post to be of some help in your business... Happy Holidays, Soo __________________ If Your Not Having Fun...Get Out Of The Business...

12-29-2005, 08:24 PM	#25 (permalink)
pcstutsman I'm Banned Join Date: Jun 27 2004 Location: Indiana Age: 28 Posts: 8,293 Rep Power: 0	Re: payroll taxes ugh i'm lost lol

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