Announcement

Collapse
No announcement yet.

Schedule C business transition to S corp and no payroll taken

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Schedule C business transition to S corp and no payroll taken

    Taxpayer has had a Schedule C business for 5 years. In Aug 2019 changed to an S Corp and was not directed to take wages, therefore no SE taxes paid through 2019. There is a small profit on the S Corp P&L . Any suggestions for SE Tax for last 6 months of year?

    #2
    You still have a couple days in 2019 for SH to take a paycheck.

    Comment


      #3
      How small of a profit? Did he tax distributions?

      If the Sch C has profit, there is SE tax in 2019.
      "Taxation is the price we pay for failing to build a civilized society." ~ Mark Skousen

      Comment


        #4
        Thank you for your replies. Yes, I was thinking of a payroll tax deposit on Monday to cover the small profit for S Corp. Might remove any chance for audit issues. Again, thank you & Happy New Year!!

        Comment

        Working...
        X