Critter1
New Member

Business & farm

NO >>> sorry Carl but  a partnership CAN NOT, MUST NOT  pay the partners "wages" or a "salary" and will never ever issue a partner a W-2.  Only employees of a partnership are issued W-2's and partners are NOT employees.  The Partnership form 1065 will issue a K-1 to each partner which is entered on a Sch E and the partners pay SE taxes on their own personal tax returns. The partners should make their own estimated tax payments since the Partnership may not pay them for the partners.

All income to the partnership should always be reported under the partnership EIN, they must never be issued to the partners directly as that is a pain to fix.  

You need to find a qualified CPA to get this mess straightened out if you did file payroll taxes on the partners already this year. Do it now before the end of the year while you still may have time to make the corrections.