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Owner Paid Wages and withheld taxes-Payroll

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    Owner Paid Wages and withheld taxes-Payroll

    New client that is hiring me to review his accounting and payroll for 2017. As the owner he paid himself 4 payroll checks and withheld payroll taxes, social security, etc. One check per quarter.

    The good news is he actually did pay all his payroll taxes on a semi-weekly basis for Federal and Monthly for State. States he filed the 941's and State tax forms quarterly but no record that I can find in his paperwork.


    Should I file all payroll forms to match total payroll for 941 and include his wages and then complete an amended 941 and not issue him a W-2 and not include in W-3? or file the forms without included his wage if he hasn't filed them yet? I assume he will just get a refund for the overpayment?

    Trying to figure out the best approach before we file all the year-end payroll paperwork


    How can I verify he filed his quarterly payroll forms?


    Thanks.

    #2
    Will you be doing the 4th Qtr Form 941 and State forms?

    If he can't provide you copies of the payroll forms filed... I would say get a POA and go to eservices but that will more than likely take too long on processing the POA.
    I would prepare the 4th quarter and year end forms like "normal". The IRS and/or States will come a calling if the other quarterly forms were never filed.
    If that is true then you can prepare them when the letters are received.

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      #3
      Would you give the owner a w-2 or remove those wages and claim overpayment?

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        #4
        Originally posted by KC-CPA View Post
        New client that is hiring me to review his accounting and payroll for 2017. As the owner he paid himself 4 payroll checks and withheld payroll taxes, social security, etc. One check per quarter.

        The good news is he actually did pay all his payroll taxes on a semi-weekly basis for Federal and Monthly for State. States he filed the 941's and State tax forms quarterly but no record that I can find in his paperwork.


        Should I file all payroll forms to match total payroll for 941 and include his wages and then complete an amended 941 and not issue him a W-2 and not include in W-3? or file the forms without included his wage if he hasn't filed them yet? I assume he will just get a refund for the overpayment?

        Trying to figure out the best approach before we file all the year-end payroll paperwork


        How can I verify he filed his quarterly payroll forms?


        Thanks.
        You can continue to file the payroll. I don't think it would be necessary to do an amended 941. When the W-2 is completed, the W-2 can be included on 2017 tax return and an overpayment will probably result. As KC suggested, you can get a POA, and request or download her transcripts; or call IRS Practitioner Priority Service hotline - 866-860-4259, as request the transcripts be faxed to you - which is the quickest way, to me.

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