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    2 Replies Latest reply on Jul 8, 2010 9:33 AM by LUCKIEST

    S-corp paid owner but didn't withhold at corp level

    oak1964 Newbie
      I have an LLC that is taxed as an s-corp. I am the sole owner and employee. I paid myself a reasonable salary, but instead of withholding taxes at the company level and sending them to tax authorities under my company EIN, I sent them as estimated SE taxes under my own SSN. This all took place in 2009 and I am now preparing taxes. Is it okay to pay myself as a 1099 contractor as a fix, or should I report the salary as wages (presumably incurring a penalty for not withholding anything at the company level even though I withheld at the individual level)? I did not file any 941s in 2009.
        • Re: S-corp paid owner but didn't withhold at corp level
          hconnections Adventurer
          oak1964 have you resolved your issue yet? I just wanted to help clarify a few things. Make sure you check your business registration filings because for tax reporting purposes, either you're an LLC or an S Corp, not both. Now, BOTH do get reported on your personal tax return unders Schedule C, But if you're an S Corp, you'll still need to file a Corporate Tax Return - Form 1120-S. You report all income and expenses for a solely-owned LLC on your 1040 under Schedule C. If it were a partnership, only then would you need to file a separate corporate return.

          For bookkeeping and tax tips, visit - the blog for small and home based business owners.
          • Re: S-corp paid owner but didn't withhold at corp level
            LUCKIEST Guide
            S-corp paid owner

            Who r u?? Go to Members page and share some info.

            Do you have an Accountant??
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