1065 help

Forum|Forum|2 years ago
February 8, 2024
3 replies
12 views

This is kind of confusing!. i have a client in where he has payroll liabilities listed both as a deduction on his 1065 and on sch l other liabilities . i am confused as i know federal payroll is a liability.

This topic has been closed for replies.

dkh

Level 15

If the client has payroll - there could/would be payroll tax expense and payroll liabilities.

D

dmufeed2Author

Level 4

But for payroll liability shouldn’t be listed as a other liabilities on schedule L ir just a regular expense on the deduction screen

abctax55

Level 15

TOTAL liability, unpaid at end of year = Balance sheet

TOTAL expense = income statement.

All of this should be on the working trial balance and is Accounting 101

HumanKind... Be Both

abctax55

Level 15

Liability = amounts withheld from employEE plus the employER taxes.

Expense = only the employER taxes

HumanKind... Be Both

D

dmufeed2Author

Level 4

So it will be entered as a normal expense and not a a current liability on sch L

abctax55

Level 15

And after looking at your posts from yesterday, I will echo Phoebe that you need to find local, mentoring help. Partnership & S-Corp return preparation is complicated, and can't be learned by asking questions of folks on a forum.

The Tax Book has a business series that has a step-by-step example of entity preparation (or, it used to...). I suggest you purchase it, or the Quick Finder version.

HumanKind... Be Both

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded