bwa
Alumni
Alumni

Business & farm

Can you explain how withdrawing money and paying fed, med, soc and state is not the same?

Making quarterly estimated tax payments is not "paying fed, med, soc and state".  They're merely an advance deposit on your liability, whatever that may be.

The way to pay "med, soc and state" is to file and pay quarterly employment tax returns with the IRS (Forms 941) and state, issue a W-2 at the end of the year, and report it as wages.  If you haven't filed Forms 941 you haven't paid Social Security and Medicare, or paid over withholding withheld from wages.

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