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jduhautois
Level 1

Are income tax and employee FICA taxes included in Line 7-8 of form 1120-s?

Are federal income withholding and employee FICA taxes to be included in Line 7-8 of form 1120-s? If not, where to include them?

 

I assume they would be deductible expenses somewhere.

 

I understand the employer portion of FICA taxes is to be included on Line 12.

1 Best answer

Accepted Solutions
WKins2
Expert Alumni

Are income tax and employee FICA taxes included in Line 7-8 of form 1120-s?

The employee withholding is not a deductible expense to the S Corporation, only the Corporation's share of the payroll taxes. The federal income withholding and employee FICA taxes are expenses of the employee, they are not business expenses. 

 

With that said, you do get to deduct the gross pay of the employee before withholding and other deductions. For example, if you paid an employee $20,000 and withheld $5,000 for tax withholding and other deductions, and the Company paid an additional $1,600 in FICA and other payroll taxes (like FUI and SUI), you would deduct on your tax return the gross pay of $20,000 of wage expense and $1,600 of payroll taxes. 

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4 Replies
tagteam
Level 15

Are income tax and employee FICA taxes included in Line 7-8 of form 1120-s?

You enter the employer share. In TurboTax, click the Start button to the right of Payroll taxes.

 

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WKins2
Expert Alumni

Are income tax and employee FICA taxes included in Line 7-8 of form 1120-s?

The employee withholding is not a deductible expense to the S Corporation, only the Corporation's share of the payroll taxes. The federal income withholding and employee FICA taxes are expenses of the employee, they are not business expenses. 

 

With that said, you do get to deduct the gross pay of the employee before withholding and other deductions. For example, if you paid an employee $20,000 and withheld $5,000 for tax withholding and other deductions, and the Company paid an additional $1,600 in FICA and other payroll taxes (like FUI and SUI), you would deduct on your tax return the gross pay of $20,000 of wage expense and $1,600 of payroll taxes. 

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jduhautois
Level 1

Are income tax and employee FICA taxes included in Line 7-8 of form 1120-s?

Got it, so "gross pay" is the keyword here. Thank you so much!

BarbaraW22
Expert Alumni

Are income tax and employee FICA taxes included in Line 7-8 of form 1120-s?

No, federal income withholding and employee FICA taxes are reported on the employee's W-2. Per the Instructions for Form 1120s, report the total (or gross) compensation of all officers of the corporation on line 7 of Form 1120s and the total salaries and wages of all employees other than officers on line 8. Please click on Instructions for Form 1120-S for more information (see page 16.)

 

@jduhautois

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