Mark Gibson wrote:

- quote -

Oh boy, there is something you need to do, and that is
determine what your salary is to be. Then you must take out
appropriate social security,federal withholding, and if your
state has income tax, the appropriate state withholding tax.

Also there is the matter of state unemployment (SUTA) tax.
It is a percentage (2.7% down in these parts) on the first
$X,000 of salary. (8,000 for Alabama, 8,500 for Georgia).

Only then do you have to worry about FUTA, which is 8/10
percent of the first 7,000$ of your salary. And since it's
not more than 100$ (.008 x $ 7,000 = 56$) you may wait
till January 31st to file the form 940 and pay that tax with
your check.

As for "profits", i.e. what remains after expenses
including your salary and applicable payroll taxes, those
are really dividends, and you pay those to yourself with
corporate check as you see fit. They are reported when
you file your tax return at end of year.

One other caveat, since you say you started an S
corporation. Just make sure you file the correct form to
elect that status within 75 days. Do NOT depend on a lawyer
to do this. YOU make sure it is done.

Cheer$,
Harlan LUnsford, EA in LA

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I have just started an S-Corp, and I'm trying to get a
handle on all of the tax issues. I am the only employee of
the S Corp.

Is FUTA paid at the end of the year? Or do I have to pay it
quarterly?

I understand that profits from the S Corp becomes income to
me for tax purposes. Do I simply declare this income at the
end of the year? How do these profits move from my
companies bank account to me? Is there some kind of
reporting I need to do?

Thanks,
Mark

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