Today TaxMama hears from Steven in Connecticut who says. “Are the salaried employees liable to pay the taxes or does the company pay? Any info on S-Corp and tax payouts would be deeply appreciated.”
Sorry, I just don’t understand the question.
Are the salaried employees liable to pay which taxes?
Their own withholding? Sure.
Their own personal income taxes? Absolutely!
The employer’s share of the taxes? No – the employer pays that.
If the salaried employees happen to be the shareholders of the s corporation and they don’t pay in the employer’s taxes, they will be held personally liable.
As to information about s corps?
IRS doesn’t provide much useful information at all. There is very little in the corporation publication that specifically relates to s corps – IRS Publication 542 http://www.irs.gov/publications/p542/
You can pick up a copy of CCH’s web-based course on s corporations for about $48. It’s probably an excellent course for tax professionals.
Or you can pick up a copy of Small Business Taxes Made Easy which will provide more practical information about your overall business for under $12.
And remember, you can find answers to all kinds of questions about s corporations and other tax issues, free. Where? Where else? At TaxMama.com[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]
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- IRS Publication 542 :: Corporations
- CCH Online Course :: S Corporations
- TaxMama’s Book :: Small Business Taxes Made Easy