As an employer, would I include Q4 Payroll Taxes (filed and paid on a 941 in Jan 2023) on my 2022 1120S?

[HelenC12 · Accepted solution]

It depends if your 1120S business uses the cash method or accrual method of accounting.  You would have indicated the type you use when you set up your business in TurboTax. 

Under the cash method, generally, you deduct expenses in the tax year in which you actually pay them.

Under an accrual method of accounting, you generally deduct or capitalize a business expense when both the following apply.

 1. The all-events test has been met. The test is met when: 

      a. All events have occurred that fix the fact of liability, and 

      b. The liability can be determined with reasonable accuracy.

 2. Economic performance has occurred. 

Please note: A business can use the accrual method for bookkeeping purposes and the cash method for tax purposes, but this is not common.

For additional information, please see:
What is the cash method of accounting?
What is the accrual method of accounting?

[Edited 02-02-2023|7:57 am PST]

@james-a-marken-g