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Returning Member
posted Feb 19, 2022 1:45:32 PM

Anyone know how to report futa wages and payroll liability?

I used ADP to pay myself and I'm trying to learn how to write off all the expenses

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2 Replies
Level 15
Feb 19, 2022 1:49:42 PM

Do you pay employees?   You can not pay yourself with a W2 as an employee.   You are not an employee. 

 

If Employee Expenses doesn't show up in the list of expenses you need to go back to the Business Profile section and click Edit by Has Employees and change it to yes.

Go to Business tab- then Continue

Business Income and Expenses - Click the Start or Update button

 

You should see the Business Summary page that lists your businesses, (right below the list you can Add Another Business)

 

Then click EDIT by the business name and the next screen should be a list of  topics,

Business Profile, Income, Inventory/Cost of Goods Sold, Expenses, Assets, and Final Details last.

 

Click Start or Update by Business Profile

Then Click Edit by Has Employees and change it to yes.

Level 15
Feb 19, 2022 2:08:22 PM

What kind of business did you set up?  Are you a sole proprietor or a LLC, S Corp, Partnership, Corp, etc.

 

If you are a independent contractor or sole proprietor or Single Member LLC but not an S Corp. you file Schedule C in your personal return.   The Net Profit or Loss is you personal income.   You pay self employment tax on a Net Profit.  That pays both parts (employer and employee) FICA for Social Security & Medicare.

 

You cannot deduct your own salary or any personal withdrawals you make from your business. As a sole proprietor, you are not an employee of the business.

 

Sole proprietors cannot take a withdrawal or salary and include it as an expense on their tax return. As a sole proprietor, you are not an employee of the business. You don't pay yourself or enter a salary or withdrawal for yourself. All the business income and expenses are your personal income and expenses in the first place. You just fill out a Schedule C. The net profit or loss is your income.  If you have a net profit of $400 or more on schedule C you will pay SE self employment tax on it in addition to your regular income tax. It's all included on your personal 1040 form.