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Self employment income on Sub S Corp

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Level 4

On a 100% owned Sub S how to you report income to make it self employment income/

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8 Replies 8
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Level 10

You don't.  S Corp income is not subject to SE tax.

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Level 4

Thank you

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Level 15

The "self employment" tax is effectively paid by issuing that W-2 for the reasonable compensation provided.

There *was* a W-2 issued, right?

Former Chump... umm.... AllStar.
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Level 4

Of course.  Thank you

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Level 15

Shareholders working in the business receive W-2 wages. That's how they pay their Social Security and Medicare taxes.


ex-AllStar
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Level 15

@sjrcpa 

Beat ya'

Jinx  😂

Former Chump... umm.... AllStar.
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Level 15

Barely. 😀


ex-AllStar
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Level 4

Thank you

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