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How to treat a owners cash withdraw on a Sub S tax return?
Do I treat it as a shareholder or officer draw. Do I place it on 1040 Sch C to from the K!?
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If they didn't take any wages for the year, the "draws" should be treated as wages and put on a W-2. Which means there are going to be some payroll tax return amending or preparation to do, plus some payroll tax deposits to make. But please, if you are going to prepare a sub S return, do a little more homework so you don't get yourself or your client in hot water.
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