Our LLC paid employees. We have a W-3. Do I add up the Federal, Social Security, and Medicare withheld and enter the totals in the Taxes and Licenses section of Expenses?

[DianeW777]

No, you would report your total gross wages on your return, then use only the employer portion of social security and medicare taxes paid.  Do not include the employee portion or federal withholding, social security or medicare taxes separately, since it is part of the gross wages.

[andrewjohnson44]

Thank you. I'm not quite understanding your response. Any chance you could provide some clarification referencing the specific boxes from the W-3 and TurboTax? So far, I have entered the wages from Box 1 into the Expenses | Employee wages and work credits category of TurboTax online. I am now wondering if I enter anything else from the W-3 (such as Boxes 2, 4, 6, and/or 17) anywhere else (such as  Expenses | Taxes and licenses)?

[PatriciaV]

If you are reporting employee expenses for an LLC that is disregarded for tax purposes on Form 1040, enter employee expenses under Schedule C >> Business Expenses >> Employee Wages / Taxes / Pension Plan, etc.

In TurboTax Business, enter your payroll expenses for your LLC on Form 1065 under Federal Taxes >> Deductions >> Compensation and Benefits.

Employee Compensation & benefits (Wages):

Employee compensation is salaries and wages reported for payroll tax purposes.

Examples of compensation include:
- Gifts/Bonuses
- Back pay
- Severance pay - payments to terminate employment
- Amount paid for administrative leave

Examples of employee benefits include:
- Medical, dental and vision insurance
- Dependent care or adoption assistance
- Employee discounts on goods or services you produce
- Educational and childcare assistance
- Group term life insurance
- Accident or medical health insurance plans
- Cafeteria plans
- Parking, transit passes, commuter vanpools

Payroll Taxes (Taxes/Licenses):

An employer's payroll tax expense is usually federal and state payroll taxes not withheld from (and therefore paid by) the employee.

Federal payroll taxes:

Social Security (one-half of W-3 Box 4)

Medicare (one-half of W-3 Box 6)

Other taxes you may have paid:
-State unemployment insurance
-Federal unemployment insurance
-Other state payroll taxes not withheld from employee