Thank you for your response.
Indeed this is not professional tax advice, this is strangers communicating on an online forum meant for people to discuss taxation subjects.
I think your answer is recommendating payroll services. I've been staying away from those in this case because:
- there's currently nobody on payroll, no salaries, no withholding, no employment taxes. We're not trying to grow the business, so there is no hiring in our future.
- setting up a payroll service, for 1 person on payroll, afaik would cost at least $20/mth.
- It's not certain that this bonus would be made every year, why pay fees every month, for years, for no compensation paid 99% of the time, for an occasional one-time bonus. Paying for professional payroll makes total sense when you pay a monthly salary.
- I'm hoping the ability to pay myself a one time bonus can be done DIY. Immediately upon having decided the amount of that bonus, making 1 EFTPS payment to the IRS for the income tax withheld and the associated FICA and FUCA taxes. And at end of tax year, update line 12 of Form 1120 with the amount of that bonus, and attach any forms related to FUCA/FICA deposited during the year.
