If I'm paying myself a salary in an S-Corp, do I need to enter value for "Payroll Taxes"?

[kissfro]

I am a 1 person LLC that files as an S-Corp and pays hisself a salary of $30,000. I submit 941 every quarter with a $7500 wage and $1768.35 withheld. My question is, in TurboTax Business, in Federal Taxes -> Deductions -> Any Payroll Taxes, what would I enter for this value??

[PatriciaV · Accepted solution]

Yes, payroll taxes paid by an S-Corporation are business deductions and should be reported on Form 1120-S Tax Return for an S Corporation.

Under "Any Payroll Taxes," enter the actual tax withheld from wages and paid to the IRS for the year.

[kissfro]

Thank you.

[tkaskmaster]

Does this include the portion withheld for the employees taxes?

[PatriciaV]

This would include the employer portion of all payroll taxes. The employee portion is not an expense to the company.

[kissfro]

I'm still confused as to what I'd enter on my 1120S. The above $1768.35 is just for one employee -- myself. So would I enter half of that? (($1768.35 * 4) / 2) for the year?

[kissfro]

To correct that, I'm guessing it would be medicare and social security tax paid of the $1768.35 which would be $1147.50, then divide that by 2, and multiply by 4?

[PatriciaV]

Enter the total employer portion (SSI & MediCare) for the year. If the number you quoted is quarterly, then you need the total for the year (what you actually paid on Form 940).

[kissfro]

Thank you.