I'm Self employed, was using ADP to keep track of payments, they automatically deduct social security, medicare, disability, and unemployment. Where can I write that off in my income since I'm already being taxed the self employment tax.
Do you want to take the deduction for the taxes you paid for employees or for the taxes you paid for yourself?
If you are filing your business taxes and want to deduct the taxes you paid for employees, you would report these payroll taxes by selecting the following:
Self-Employed Individuals do not pay Disability or Unemployment taxes on themselves in many states, so these entries would if paid for yourself would depend on your state.
The Social Security and Medicare Taxes that you paid in would be entered by selecting the following:
When you file as a self-employed individual, the Social Security and Medicare taxes are part of your overall tax liability so their is not a distinction made between SS and Medicare versus your regular federal tax payments.
Do you pay employees and give them a W2? You are not suppose to pay yourself using payroll. You just fill out schedule C. You don't expense payments to yourself. It doesn't matter what you take out. The Net Profit or Loss is your personal pay and income. You pay the Self Employment tax on it. You might have a mess to clear up.
I'm the only employee. I think I have made a mess, wanted to use ADP to show proof of use with my PPP loan but It caused this problem I wasn't aware of ahead of time. At this point I didn't see how I can clear this up. Any suggestions?