I have paid Bonus $ 40K to myself (100% ownership), I prepare Schedule K1. Should I report $ 40K on Line 16 ? Then
pass thru the $ 40K to Form 1040 as additional income on Sch 1. Do I need to pay Employment tax on that
Bonus ? I believe I didn't pay Employment Tax so far. I just pay Personal Income tax. Instead of claim as
Bonus, can I say this is Distribution of profit. Is it Tax free, just pay Personal Income tax as additional income ?
If I say this is Bonus, should I report on Form 100S, SCH F Line 7 as Compensation of Officier ? Since Corporation is only $600 ( 1.5% * 40K), under $ 800, do I need to pay additional $ 600.0 ? I receive notice
from FTB to collect $ 600.00 plus interest & penalty. Should I not pay for it ? Please advise.
