At Singletrack, we run & manage your S-Corp Owner/Officer "Taxes Only" payroll every month on the 15th. Payroll taxes are collected/debited/paid monthly on the 15th.
"Taxes Only" Payroll means monthly payroll taxes are always paid, but owner/officer paychecks are not cashed and therefore salaries are not debited out of the business. We enter your payroll in QBO as a check that we do not issue.
"Owner Draws" rather than issuing your paycheck, simply transfer the amount you want whenever you want it from your business account to your personal account. We recode some of these draws as your net paycheck. This puts you in complete control of how much of your money you take out of your business to live on.
Bookkeeping Reports will show that your net paycheck was paid out as recoded "owner draws"
Officer's Salary Amount - we will always give you our recommended minimum salary amount which fully optimizes your self-employment tax savings.
REMEMBER : you must always make payroll tax payments every month, this cannot be avoided.
Again this is the trade off for the big s-corp owner tax savings.
You should always have overdraft protection for your business operating account. Bank NSF fees + IRS/State penalties + software NSF fees can be steep
See also What is Self Employment Tax?
See also Can you explain how payroll taxes work?
See also Can S-Corp Owners' deduct medical premiums paid by their business?
See also Where can I find Employee W-2s and Paystubs?
See also What is an S-Corporation?
Comments
0 comments
Article is closed for comments.