My S-Corp made payroll tax payments with Form 941. Shouldn't this be an expense to reduce income? If so, where is it entered?

[JulieCo · Accepted solution]

Yes, but only the employer portion of the payroll taxes filed with Form 941 are deductible.  On the 941 form, you are filing both the employee's portion AND the employer portion, plus you are filing the employee's withholding taxes which are not deductible. 

Here is where you enter the employer's portion of the payroll taxes (FICA and MCARE), plus any unemployment taxes your business pays:

1. Select the Deductions tab at the top of screen (under Federal Taxes).
2. Scroll down to Compensation and Benefits.
3. Select Payroll Taxes -- you will then be brought to a screen to enter your amount.  See the sample screenshot attached.