onestop73
Level 3
‎12-07-2019 03:24 AM

In regards to form 1120 Office compensation, I have a client who refuses to use payroll, therefore is it ok to report his income one line  12 Form 1120, then carry this income to his personal directly on schedule C, so he can pay the SE taxes?

0 Cheers
IRonMaN
Level 15
‎12-07-2019 03:24 AM

No, it isn't ok.  He needs to pay payroll.  If he isn't willing to follow the rules you need to consider referring to him as a former client.


Slava Ukraini!

View solution in original post

0 Cheers
onestop73
Level 3
‎12-07-2019 03:24 AM
Thank you for that information, learning a lot here.
0 Cheers
onestop73
Level 3
‎12-07-2019 03:24 AM
For this former client, would it be beneficially correct to issue himself a W2 and pay the late penalties on the payroll taxes and reports?
0 Cheers
abctax55
Level 15
‎12-07-2019 03:24 AM
That's the *only* way to handle it, and if he does - then you can consider whether he has to be a "former" client.
"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
0 Cheers
onestop73
Level 3
‎12-07-2019 03:24 AM
awesome! Thank you again for all the feedback, love this crowd!
0 Cheers
abctax55
Level 15
‎12-07-2019 03:24 AM
YVW...we'll be here all day/night/etc.  Tips accepted.

It IS nice to be appreciated; sometimes folks don't appreciate our 'humor'.

Hey...would you mind editing the header on your question so it says Officer (instead of just office)... it'll help with future searches of the data base.  TIA
"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
0 Cheers
IRonMaN
Level 15
‎12-07-2019 03:24 AM
We like folks that appreciate the help.  Come back often, we are open 24 hours -------------------- just not in a row. :smile::smile:

Slava Ukraini!
0 Cheers