Started By
Message

Unemployment question concerning LLC taxed as an SCorp

Posted on 5/17/20 at 5:17 pm
Posted by tigersint
Lafayette
Member since Nov 2012
3549 posts
Posted on 5/17/20 at 5:17 pm
I am a 1099 contract worker. I have created an LLC and as of January this year we filed papers to have it taxed as an SCorp.

Between January and March I made money but I have not been back to work since March.

From my understanding as an SCorp this year I will have to run Payroll and give myself a salary but I am unsure how this step works as my CPA will be assisting in this.

I have been getting unemployment since I “lost” my job but I still have my LLC open.

Will my business structure consider me technically still receiving a salary rite now by dividing all of my yearly earnings and paying me “X” per week and potentially making me at risk to have to pay all of that money back or should I be ok since I am not working rite now.

My CPA has told me that I should be ok but I am trying to get some guidance from anyone that has a better understanding of payroll that can help me understand this to make sure that I go about it correctly.
Posted by doya2
Charenton
Member since Jan 2005
7933 posts
Posted on 5/17/20 at 6:33 pm to
“Wages” lost? You get a w2?
Posted by Fat Bastard
coach, investor, gambler
Member since Mar 2009
72928 posts
Posted on 5/17/20 at 6:41 pm to
quote:

Will my business structure consider me technically still receiving a salary rite now


no because it will show on your state and fed quarterly papers. see below

if you plan on going back to work. pro rate the salary for last 3 quarters. pay state and fed quarterly on state forms and fed forms. you can adjust your salary anytime. The last quarter you can make changes if it is hard to estimate income and salary.you already have to list what you made each month on each quarterly return. So they will see what months you are out of work or had lesser work/income. You are overthinking the paycheck stuff. just make damn sure your W2 you make at end of year matches those quarterly payments you made on payroll tax, fed and state income tax. of course as you know while you are paying the 15.3% payroll tax on fed forms as the employer you will only show the employee 7.65% on W2 for combined SS and medicare tax.

You can make ZERO dollars and you still have to file fed and state quarterly papers so they know. Just like if you do not do annual report the SOS will declare business inactive after a few years.

i hope i understood your question.

also, do not forget your FUTA ans SUTA taxes also!
This post was edited on 5/17/20 at 7:19 pm
Posted by Fat Bastard
coach, investor, gambler
Member since Mar 2009
72928 posts
Posted on 5/19/20 at 8:52 am to
YGM

i explained some things and gave you some links i won't post here.

first pageprev pagePage 1 of 1Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram