Paul wrote:
- quote -

There you go talking about North Carolina again.

ChEAr$,
Harlan

Moderator:
This is why I read Harlan's submissions in great detail.

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"tns1" <tns1[at]cox.net> wrote:

- quote -

The "quarters" for payroll tax and for estimated tax should
never be confused. You use the payroll accounting for your
W-2 wages from the corporation. Many owners will be sure to
adjust withholdings to cover their tax liability. One of the
planning tools used is to load up the withholding in
December, since, unlike estimated tax, it is assumed to be
withheld evenly through the year.

But if you insist on making estimated payments yourself,
those follow the rules you have been used to using. The S
corporation doesn't make estimated payments since it doesn't
have (federal) tax liability in most cases.

If instead you had a "C" corporation, it does make estimated
payments, but on a 4-6-9-12 schedule, rather than the
4-6-9-1 schedule individuals use.

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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Your payroll form 941 is on calandar quarters. Your
estimate payments are still on those funny months. S-corps
normally do not pay taxes as everthing is passed through to
owners. You must figure on your ES as earned in the S-corp,
not as distributed to you. C-corps do pay taxes and have
their own estimated payments form.

ed

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tns1 wrote:

- quote -

Put another way, you use each, i.e. regular quarter for
payroll taxes, and the gobment quarter for personal.
Incidentally, that has nothing to do with retailers, but
with the gobment itself, and it's old fiscal year which used
to end June 30th.

- quote -

A C corp pay estimated taxes a tad differently; 15th of the
months; 4th month, 6th, 9th and 12th month.

NOW; are you confused?

If not check back.

ChEAR$,
Harlan Lunsford, EA n LA

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"tns1" <tns1[at]cox.net> wrote:

- quote -

Two types of tax, two differing dues dates. As you noted,
payroll tax reports are for normal calander quarters anding
March June, September and December. Note that it's possible
that you will have to make payroll tax deposits on a more
frequent basis, like monthly or weekly, while the quarterly
reports (the 941) is prepared and sent in on a quarterly
basis.

Your personal estiimated income tax deposits are due, as you
noted, on a different schedule.

- quote -

Unless you have a built-in gains tax with the "S"
corporation, it won't owe any taxes. You will however, as
that is a pass through item from the compoany to your
personal return.

- quote -

O`ddball rule (I like that term!), as it is your income to report.

- quote -

N`ope, looks like you have most of it down.

- quote -

If pigs could fly......

--
Paul A. Thomas, CPA
Athens, Georgia

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As an operator of a sole proprietorship for several years, I
am used to paying estimated taxes for quarters defined as
months 1-3,4-5,6-8,9-12. I always though the quarters were
sized in this oddball way to adapt to the larger xmas season
that retailers experience.

Now that I have an s-corp with employees, I discover that
for payroll the quarters are defined evenly as
1-3,4-6,7-9,10-12.

I expect I will still be required to make make estimated
payments, both as an individual and possibly on behalf of
the business. How do I reconcile which 'quarter' to use? Do
I use both?

For instance, if the s-corp has a sizable capital gain I
believe it is obligated to make an estimated payment in the
quarter the gain is realized - but which quarter scheme? An
s-corp is pass-thru so is it the oddball rule or the even
quarter rule?

Any difference for a c-corp?

Please tell me I have mis-interpreted something, or explain the method
to this madness.

thanks

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