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wages for sole proprietor or single member LLC

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Level 2

I see several sole proprietors or single member LLC's putting them selves on their own payroll.  They insist on collecting wages, paying employer taxes and getting a W-2 from their own business.  Is this not legal and should they be told take themselves off payroll.

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5 Replies 5
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Level 15

Yeah, they need to be evicted from payroll.

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
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Level 13

You previously asked this very same thing, here:

https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/sole-proprietor-or-single...

 

Did you read the info you were given, there? You don't need to keep asking; we are the same people as last month.

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"Level Up" is a gaming function, not a real life function.
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Level 11

@qbteachmt  "we are the same people as last month."

Ah, but I was so much older then
I'm younger than that now

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Level 11

This question keeps coming up here.  For example, see

https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/sole-proprietor-or-single...

Is it legal?  I'm trying to think of what law is being broken, or what tax is being underpaid.  If an Executive Order were issued to allow this, would anyone object?  I think that Schedule C filers are doing it because it's easier for them to keep current on their personal tax obligations that way.  I don't think IRS is opposed to people wanting to avoid delinquencies.  

But maybe John Smith is thinking that a W-2 from JS Enterprises is an easy way to avoid questions from lenders who don't like dealing with Schedule C filers.  Is it fraud if a loan application states someone is an employee, rather than self-employed?

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Level 15

@mj46 

"..They insist on collecting wages"

Then I would *insist* they exit out of my professional life.

@mj46 - @qbteachmt is right.  Please don't ask the same thing over & over again.  Our answers aren't going to change.

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(@BobKamman - thanks, now I have to Youtube that to get the tune right 🙂

Former Chump... umm.... AllStar.
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