Payroll deductions on 1120s

[ideal_trucks]

This my first year as an S-Corp after converting from an LLC. I'm the sole owner.   I paid myself a wage at the end of December, and have a W2 for that.  

I didn't actually take the money out of the business bank account yet for my net pay, but I think I can roll that up into my basis.

The employee taxes that were withheld and the employer taxes did not actually come out of the bank account until 2025.  The gross amount on the W2 is $20K.  

On line 7 of the 1120S, would I enter $20K or would I only enter the net pay since taxes didn't leave until 2025?  

On line 12, would I enter 0 since nothing left the bank account until 2025?   

[RobertB4444]

On line 7 you would enter the gross pay since you paid your self that much.  The gross pay will be what you are entering onto your personal return as income from your W2 so you will mirror that entry since the IRS will be attempting to match those amounts.  Since you are the owner the money is yours anyway so you have access to it for personal use whether or not you transferred it.

Since you are a cash basis taxpayer the amount on line 12 is zero since you hadn't paid the payroll taxes yet.  The payroll taxes should be a balance sheet entry for the amount of accrued payroll taxes that were in the account at the end of the year but hadn't been sent out yet.  You'll deduct them on your 2025 tax return.

@ideal_trucks 

[AmeliesUncle]

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@ideal_trucks wrote:

I didn't actually take the money out of the business bank account yet for my net pay,

So the corporation didn't actually pay you wages in 2024?