@Critter-3 Thanks for the explanation!
When S corp pay IRS following on behalf of employee:
- Quarterly returns ( Form 941) which includes estimated Federal Tax withheld from employee, Medicare & Social Security
- Annual Return FUTA Tax (Form 940)
- Any State Unemployment Tax (This doesn't goes to IRS)
I understand employee can deduct estimated Federal Tax , Medicare & Social Security reported on W-2 and Form 941. What about FUTA tax and State Unemployment Tax ? Who deduct and/or report those taxes? S-corp on 1120S or employee on 1040. ?
Note: On 1120 S Form , under Payroll deductions, I already deducted employer's portion of medicare, SS , FUTA and state unemployment taxes. Thanks
