Late S Corp election and payroll/W9

[Mthatcher]

Hello,

I was granted S Corp election from my SMLLC, effective 1/01/2024.  I have customers that have the old SMLLC W9 on file, do I just send them the S corp info now, and they update there records and not send me a 1099?

Also I have determined what my reasonable salary is, but have not paid myself any money.  Can I pay one check

at the end of the year?  I am concerned about late filing payroll taxes.

Just need help with the transition, as the S Corp election wasnt approved until July.

Thanks

[tagteam]

You can send them a W-9 indicating the LLC is now a S corporation.

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@Mthatcher wrote:

Can I pay one check at the end of the year? 

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Yes, you can.

[Mike9241]

 do I just send them the S corp info now, and they update there records and not send me a 1099?

yes

actually Corporations and S corporations are not usually required to receive 1099 Forms for services provided. This is because they are considered separate legal entities.

if they do you can request a corrected 1099

taking your wages late in the year is ok provided that earlier in the year you did not take distributions.

however 

Not all employers must file a Form 941. If an employer paid wages subject to federal income tax withholding, Social Security, and Medicare taxes, it’s almost certain the employer must file a Form 941. An exception to this would be if the employer received a notification to file Form 944, Employer’s Annual Federal Tax Return. This form is typically used for small employers with a minimal tax liability. Seasonal employers do not have to file a Form 941 for the quarters in which they have no tax liability. Employers of household employees usually don’t file a Form 941, and employers of farm employees file Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees, instead. The IRS notes that if none of these exceptions apply, and the business has not filed a final return, it must file a Form 941 each quarter even if the employer didn’t pay wages during the quarter.