"kbutterly" <kbutterly[at]yahoo.com> wrote
- quote -



Did you ever.

There are (by now late) payroll tax returns (Forms 941, 940, state) to
prepare and file - and pay the tax due.
To file most of those forms require state tax ID numbers - which I suspect
you don't have yet.
The company would issue you - the employee - a W-2 for your wages - and that
amount goes with all other W-2's to Line 7.

If those wages paid to you by the company zero out profits (the mathematical
complexities of that are staggering), then the K-1 would show $0.
If you get paid wages, properly reported on W-2, then Schedule SE is not
involved.
In fact, if there are "S" corporate profits still remaining on the K-1,
Schedule SE is not involved.


Here's a suggestion, take your stuff to a local CPA or EA for help. Be
humble.





--
Paul A. Thomas, CPA
Athens, Georgia

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On Feb 4, 4:26�pm, kbutterly <kbutte...[at]yahoo.com> wrote:
- quote -

Employer.
Besides paying out the pay envelope check, the employer must take out
withholdings and pay them out with the employer's employment taxes to
the
various taxing authorities frequently during year(probably monthly in
this income
range.) At a minimum, you would have Fed income tax withholding,
Employee
and employer FICA, employee and employer Medicare tax,, FUTA, SUTA,
and
Worker's Comp. Most states and many municipalities have their own
income
tax. Employment taxes(not including the share withheld from wages) are
sepa-
rately stated on Form 1120S.

Also, there probably should be some sort of annual fee to the state of
incorporation,
and also fees and or taxes to the state or states in which you are
doing business.

Bill Patch

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kbutterly wrote:
- quote -

Perhaps. You say that you "show it" as salaries. Did you indeed pay
it as a salary, withholding FICA and income tax and filing required 941
and 940 and state SUTA reports?

ChEAr$,
Harlan Lunsford, EA n LA

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Good morning all,

Just want to make sure I understood some of your earlier advice. I am
the sole owner/shareholder of an S Corp. The corp was set up solely
because on of my larger clients can only deal corp to corp.

The S Corp earned about $35K this year. On my 1120S, I show this as
Gross Receipts. Then on line 8, I show it again as Salaries and
wages, making my Ordinary business income $0. I then fill out a
Schedule K-1 for myself, showing the income, and use the $35K on my
personal 1040 on Schedule SE?.

Did I miss anything major?


thanks for any advice. You all have been a huge help to this newbie.

Kathryn

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >