"ge" <e_c_l_e_s[at]a-znet.com> wrote:

- quote -

Take the deduction and pay the tax on the salary in 2004!

Mike Lewis, CPA

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ge wrote:

- quote -

First of all, never, EVER, back date a check. What's done
is done.

If your corporation is on the accrual method of accounting,
then you may simply make the bookkeeping entry for December,
set the net pay up as an accrual and write the check in
January, of course filing the necessary
employment/unemployment tax reports by January 31st.

If on the cash method of accounting, a bit late I think.
Omitting such a small salary (relatively speaking of course)
is not likely to raise any eyebrows at IRS.

Cheer$,
harlan Lunsford, EA n LA

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"ge" <e_c_l_e_s[at]a-znet.com> wrote

- quote -

It would be 2004 income to you, and a 2004 expense to the company.

--
Snowmen fall from heaven unassembled.
-------------
Paul A. Thomas, CPA
taxman at negia.net

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I am part-owner of an S-corp. Our corp income consists of
royalties from a product we designed a few years ago. As
the designated "product support person", I take a few calls
a year, and get a nominal (annual) salary ($1200), which I
pay payroll taxes on. The rest of the corp income is
distributed.

The question is this: through oversight, we still haven't
paid my 'salary' for 2003. If we cut the check now (Jan
11+), should I take that as 2003 income, or does it go into
2004? If 2003, do we have to backdate the check?

(Or something else?)

Thanks,
George

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