What Does an S-Corporation Need to do in Preparation for Year-end Payroll Taxes?

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Below are several time sensitive items that S-Corporations should take into consideration as part of their year-end planning.

Most importantly, remember that the Internal Revenue Service requires an owner of an S-Corporation to pay themselves a reasonable salary for services provided to the corporation, which should be reported on Form W-2.

In addition to wages, taxable fringe benefits must be added to Form W-2 wages. These may include:

  • Health Insurance Premiums: Any shareholder that owns 2% or more of the corporation must report health insurance premiums paid by the corporation as compensation to be included on the shareholder’s Form W-2. …read more

    Read more here:: Government Contracting

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