If you are reporting employee expenses for an LLC that is disregarded for tax purposes on Form 1040, enter employee expenses under Schedule C >> Business Expenses >> Employee Wages / Taxes / Pension Plan, etc.
In TurboTax Business, enter your payroll expenses for your LLC on Form 1065 under Federal Taxes >> Deductions >> Compensation and Benefits.
Employee Compensation & benefits (Wages):
Employee compensation is salaries and wages reported for payroll tax purposes.
Examples of compensation include:
- Gifts/Bonuses
- Back pay
- Severance pay - payments to terminate employment
- Amount paid for administrative leave
Examples of employee benefits include:
- Medical, dental and vision insurance
- Dependent care or adoption assistance
- Employee discounts on goods or services you produce
- Educational and childcare assistance
- Group term life insurance
- Accident or medical health insurance plans
- Cafeteria plans
- Parking, transit passes, commuter vanpools
Payroll Taxes (Taxes/Licenses):
An employer's payroll tax expense is usually federal and state payroll taxes not withheld from (and therefore paid by) the employee.
Federal payroll taxes:
Social Security (one-half of W-3 Box 4)
Medicare (one-half of W-3 Box 6)
Other taxes you may have paid:
-State unemployment insurance
-Federal unemployment insurance
-Other state payroll taxes not withheld from employee
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