qbteachmt
Level 15

A W3 is sent as a cover sheet to a W2. File a corrected W2C and W3C both showing $0. There is no payroll expense here and no payroll taxes to be paid; if anything was paid, file for a refund (such as 941X, if that was used).

For S Corp or not, you need to get info from the IRS. There would be FEIN, so find out what the IRS has on file for that FEIN.

Then, if you find S Corp status was applied for, you need to find out when it was granted and when it "starts." If it is supposed to be in 2020, then you need to do a year end payroll properly with "reasonable wage" and I imagine $1,000 is not reasonable. That also means there is no Sched C, because now, the person is employed by their corporation.

If all of this is new to you, you should find a mentor. My recommendation, if you find out there is supposed to be 1120S, is to put it on extension, because it will likely take a bit to find someone that can help at this point in March.

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