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kgpuzio
New Member

My small business withheld 5K in federal income tax from employees. Is this a deductible business expense -- like SS tax, medicare, and unemployment tax?

If the 5K is not deductible, is there some other place this should appear in my taxes?  I am using QuickBooks self-employed and don't see a place for it.  

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MaryK1
Level 9

My small business withheld 5K in federal income tax from employees. Is this a deductible business expense -- like SS tax, medicare, and unemployment tax?

No the tax withholding from your employees is not deductible because it is a subtraction directly from your employee wages that you are required to submit to the IRS.  You act as the trustee for the transfer so it is strictly an administrative task.

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MaryK1
Level 9

My small business withheld 5K in federal income tax from employees. Is this a deductible business expense -- like SS tax, medicare, and unemployment tax?

No the tax withholding from your employees is not deductible because it is a subtraction directly from your employee wages that you are required to submit to the IRS.  You act as the trustee for the transfer so it is strictly an administrative task.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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kgpuzio
New Member

My small business withheld 5K in federal income tax from employees. Is this a deductible business expense -- like SS tax, medicare, and unemployment tax?

Thank you.  What about state income tax?  Is that deductible business expense?
MaryK1
Level 9

My small business withheld 5K in federal income tax from employees. Is this a deductible business expense -- like SS tax, medicare, and unemployment tax?

The state withholding is the same as the federal.
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kgpuzio
New Member

My small business withheld 5K in federal income tax from employees. Is this a deductible business expense -- like SS tax, medicare, and unemployment tax?

Thank you!
MaryK1
Level 9

My small business withheld 5K in federal income tax from employees. Is this a deductible business expense -- like SS tax, medicare, and unemployment tax?

You are welcome.
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