I am self employed. I am setup via QB to pay myself a regular paycheck. Earlier this year I did not pay myself a few times.How to know my tax liability for backpay?

[VolvoGirl]

Oh, if you are a LLC with S corp status you do not file schedule C for it.  You have to file a separate 1120S Business return.  When did you become an S corp?  Maybe schedule C was right but now you need the 1120S.

[dchatfield]

I can't find the doc for when I became an S corp. My CPA handles all of this stuff, which is why I am so ignorant. I did send him an email when I asked this board the question. I wanted to get advice from multiple sources. I didn't expect him to answer this weekend. Fact is: I pay him once a year to "do my taxes" (he is not on a "retainer" or whatever it's called).

[TomYoung · Accepted solution]

"Which option is going allow me to pay less taxes overall?"

No. 3 of course because. as I explained, that larger profit won't be subject to payroll taxes.  Now maybe going that route puts you in an underpaid situation resulting in penalties and interest, but technically those are not taxes and if the real question "is which option results in the least amount paid to the IRS" nobody can answer that as it's a facts and circumstances situation.  Since underpayment penalties are not that onerous right now and as it sounds like the big pickup in business came late in the year, allowing you to possibly "annualize" your income resulting in no or very little penalty, I'd GUESS that No. 3 is still the best route.

But that's EXACTLY what your CPA is there for.

[dchatfield]

Thank you all for your time! and sorry for my ignorance.. "taxes" are the business I am in 🙂