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Schedule C State Payroll Taxes

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Level 2

Can a single member LLC that files a Schedule C deduct the employer portion of employee's state wages? 

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11 Replies 11
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Level 5

Why wouldn't any entity be allowed to deduct gross payroll and employer payroll taxes (FICA/FUTA/SUI)?  It's an ordinary and necessary business expense.  Please respond with a reason you think they should not be deducting this,

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Level 2

I don't think that they shouldn't.  I was checking to make certain that state employer taxes are deductible.  I know federal are...  I checked regulations and couldn't find anything specific to state employer payroll tax deductions for a Schedule C. 

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Level 8

Why specific to a Schedule C ?   Deductibility would be same for any business regardless of entity classification.   Schedule C, SCorp, Multi Member LLC, Partnerships.     Gross Wages + employer FICA match + federal and state unemployment taxes

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Level 2

Income tax is not deductible for a sole proprietorship so I was simply asking about state employer payroll tax as I could not find the regulation.

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Level 15
Level 15

What employer portion of state wages?  Theres state unemployment...what else doe the employer pay to state?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 2

Unemployment and disability

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Level 15
Level 15

The employee pays the disability, not the employer.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 2

According to payroll reports there is an employer contribution portion of disability.

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Level 2

New Jersey workers and employers contribute to the cost of the temporary disability program. The contribution rate for employers varies from 0.10% to 0.75%.

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Level 12

Is the Business Owner also the person getting paid through Payroll?

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Level 2

No.

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