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  • S-corporation Shareholders

    From Stuart O. Bronstein@21:1/5 to All on Mon Jul 31 15:13:43 2023
    I have a question about how to report wages for S-corporation
    shareholders. I know that the (reasonable) wages portion of their
    compensation is subject to withholding taxes. But does that mean they
    get a W-2 for that portion of their compensation, and K-1 for the
    balance? Or does it all go on a K-1?

    Since there's nothing on the K-1 to show taxes withheld, I'd think
    they'd get both. But I just want to check with those of you who
    actually do this work.

    Thanks.


    --
    Stu
    http://DownToEarthLawyer.com


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  • From Ellen Domorad@21:1/5 to Stuart O. Bronstein on Wed Aug 2 17:33:33 2023
    On Monday, July 31, 2023 at 12:16:16 PM UTC-7, Stuart O. Bronstein wrote:
    I have a question about how to report wages for S-corporation
    shareholders. I know that the (reasonable) wages portion of their compensation is subject to withholding taxes. But does that mean they
    get a W-2 for that portion of their compensation, and K-1 for the
    balance? Or does it all go on a K-1?

    Since there's nothing on the K-1 to show taxes withheld, I'd think
    they'd get both. But I just want to check with those of you who
    actually do this work.

    Thanks.


    --
    Stu
    http://DownToEarthLawyer.com


    --
    This email has been checked for viruses by AVG antivirus software. www.avg.com

    Hi Stu,


    Yes, an S-corp shareholder gets a W-2, and a K-1. W-2 provides info about his compensation, and a K-1 provides info about all other income.

    Hope it helps.

    Thanks!

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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  • From Stuart O. Bronstein@21:1/5 to Ellen Domorad on Wed Aug 2 20:54:54 2023
    Ellen Domorad <ellendomorad@gmail.com> wrote:
    Stuart O. Bronstein wrote:

    I have a question about how to report wages for S-corporation
    shareholders. I know that the (reasonable) wages portion of their
    compensation is subject to withholding taxes. But does that mean
    they get a W-2 for that portion of their compensation, and K-1
    for the balance? Or does it all go on a K-1?

    Since there's nothing on the K-1 to show taxes withheld, I'd
    think they'd get both. But I just want to check with those of you
    who actually do this work.

    Yes, an S-corp shareholder gets a W-2, and a K-1. W-2 provides
    info about his compensation, and a K-1 provides info about all
    other income.

    Hope it helps.

    It helps a lot. That's exactly what I needed to know. Thanks Ellen!!!

    --
    Stu
    http://DownToEarthLawyer.com

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)