Schedule C business transition to S corp and no payroll taken

[haga1505]

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?

[kathyc2]

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

[Anarchrist]

How small of a profit? Did he tax distributions?

If the Sch C has profit, there is SE tax in 2019.

[haga1505]

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!!