Salaries and payroll tax expense are entered as a farm expense on your 1065. To do this, please follow these steps:
- While in your return, click Federal Taxes > Farming.
- If you've already entered information on your farm you will see a screen, Farming Net Profit/Loss Summary. Click Edit
- On the screen, Your Farming Income and Expenses, click the Start/Update box next to Farm Expenses.
- Enter the salaries in Labor hired.
- Enter the employer's portion of payroll taxes under Taxes, licenses, and permits.
