Is there a particular software recommended for estimating s corp tax payments.
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Generally speaking an S Corporation has no tax liability and so estimated tax payments are not required by the corporation. Can you give us some more details? -
S Corp and ES payments
Hopefully your S Corp officer/owner is receiving reasonable wage compensation which would include the withholdings of Federal and State Income Tax, thereby, reducing or eliminating any need for them to file Estimated tax payments. As previously mentioned the S corp itself does not pay Estimated Tax payments.
SandyComment
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1040/w-2
Depending on the profits of an SCorp, I may have a shareholder taking a $5 net paycheck on a $400 gross paycheck. All the rest of the paycheck is withholding for Fed & State. The only problem with so much withholding is the 1040 can't be Efiled, 50% limitation. But using planned pay check withholding, can eliminate 1040 estimates.
On occasion, I may wait until Nov or Dec to do any officer/shareholder payroll. This way I have a better picture of where profits are going to be. Any withholding paid that late through withholding is considered as being paid equally throughout the year so quarterly underpayment rules are bypassed with W-2 withholding.Last edited by BOB W; 06-20-2006, 08:30 AM.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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