Self employment income on Sub S Corp

[Dependable]

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

[rbynaker]

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

[Dependable]

Thank you

[abctax55]

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

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

[sjrcpa]

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

[abctax55]

@sjrcpa 

Beat ya'

Jinx  😂

[Dependable]

Of course.  Thank you

[Dependable]

Thank you

[sjrcpa]

Barely. 😀