Thank you very much for a very detailed explanation and clarification. I really appreciate it. I double-checked under both options you provided, and the result is the same so I'm good to go regarding payroll taxes. As for the state filing F-1120, Turbo tax is going to charge me $50 and as I mentioned only the first quarter shows an amount of taxes due as other quarters have no amount. Is it worth it, again first time filing as an S-corps so I'm not sure how easy the state form will be. I was thinking of e-filing it myself through the IRS website. Thanks again for helping me out. Take care.
