Issuing W-2's Husband and wife s corp

[RNuse09]

This maybe the dumbest question of the day. If a husband and wife own a s corp equally and pay themselves a salary are they required to issue themselves w-2's. I am really used to small business with sched c's and having the client pay estimated tax. I was thinking it really doesen't matter becasue paying estimated payments and withholding are the basically the same thing, the govt still gets paid.

[Burke]

H&W are employees (probably officers) of the corporation. Salary requires W-2's, 941 quarterly payroll reports, annual FUTA (940) report, state unemployment form reports, as well as state withholding tax reports, etc. Monthly bank deposits of withholding taxes may be required depending on amounts. This is quite different from estimated tax forms 1040-ES.

[Gretel]

Agreed. In addition, issuing W-2's is the only way to get credit for Social Security.

[outwest]

Welcome to one of the "cons" of incorporting..

payroll for officers..

Freudian slip on the title spelling perhaps..

[ChEAr$]

H&W are employees (probably officers) of the corporation. Salary requires W-2's, 941 quarterly payroll reports, annual FUTA (940) report, state unemployment form reports, as well as state withholding tax reports, etc. Monthly bank deposits of withholding taxes may be required depending on amounts. This is quite different from estimated tax forms 1040-ES.

Hmmm, how do you do monthly bank deposits of withholding taxes? (grin

with a blue coupon?