"purirb123[at]yahoo.com" <purirb123[at]yahoo.com> wrote:

- quote -

W-2. Also a little late for 2004.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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purirb123[at]yahoo.com wrote:

- quote -

Since you've posted two others, I hope you're talking ONLY
about the current year, 2005; right? Too late now for
retroactive 2004 compensation; well, practically speaking
anyway.

If you're an officer AND stockholder, then you are an
employee, hence W2 is correct. Don't forget to withhold
taxes AND file appropriate state unemployment reports, and
federla unemployment taxes.

ChEAr$,
Harlan Lunsford, EA n LA
Wed 23 Feb 2005

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It would help if you supplied more information than this.

As an "officer" of the business, I assume you actively work
in this business.

If the business is a Corporation (or S-Corporation), then
the "officer compensation" is called just that on the tax
return and is wages subject to payroll withholdings. You
should be paying yoursself a regular, reasonable salary. At
the end of the year you would receive a W-2

If the business is a partnership, then any "officer
compensation" you pay yourself is called "guaranteed payment
to partners" on the Form 1065 Partnership Tax Return. You
would not receive a W-2 or 1099. Instead, your share of the
net income from the business would end up on your Form 1040
and be subject to self-employment tax.

If the business is just you, then you would need to fill out
Schedule C of Form 1040. Again no W-2 or 1099 is issued.
The "officer's compensation" is simply a cash draw to you.

Based on the lack of depth of your question, I would
STRONGLY suggest you hire a CPA or EA for help.

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I as owner intend to give my self an officer compensation.
Should I issue myself a W2 or 1099?

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