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Level 5
July 9, 2020
Question

Self employment income on Sub S Corp

  • July 9, 2020
  • 3 replies
  • 19 views

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

This topic has been closed for replies.

3 replies

rbynaker
Level 13
July 9, 2020

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

Level 5
July 9, 2020

Thank you

abctax55
Level 15
July 9, 2020

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

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

HumanKind... Be Both
Level 5
July 9, 2020

Of course.  Thank you

sjrcpa
Level 15
July 9, 2020

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

The more I know the more I don’t know.
abctax55
Level 15
July 9, 2020

@sjrcpa 

Beat ya'

Jinx  😂

HumanKind... Be Both
sjrcpa
Level 15
July 9, 2020

Barely.  😀

The more I know the more I don’t know.