Announcement

Collapse
No announcement yet.

S Corp and W2

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    S Corp and W2

    Good Afternoon

    I have two clients who will be purchasing a business and an investment, however will not be participating in the day to day business. They will own 50% each and will have a manager and employee and sub contractors working, again they will not participate in the day to day activities. Do I need to issue them paychecks (W2 at the end of the year?). I am thinking this would be consider passive income/Losses!

    Thank you in advance.
    Tags: None
    #2
    Have to....

    make sure "no services". See reference below (not all inclusive) along with your other research.

    S corporation employees, shareholders and corporate officers | Internal Revenue Service
    https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-and-corporate-officers
    The definition of employee for FICA (Federal Insurance Contributions Act), FUTA (Federal Unemployment Tax Act) and federal income tax withholding under the Internal Revenue Code include corporate officers.
    Always cite your source for support to defend your opinion

    Comment

    Previous template Next

    Disclaimer

    Collapse

    This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.

    Working...
    X