Question

SCorp gives Salary W2 but didn't retain taxes during the year ?

Forum|Forum|2 years ago
March 2, 2024
1 reply
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First time using my own SCorp. I am paying myself 1/2 of the profit as W2 income. But I didn't retain or pay any taxes during the year. My S corp generated a W2 income information ( with the gross salary) and I placed that in my personal return.

I am confused because I also work as a W2 employee for a company, that pays me on W2 but they retain taxes.

Is that the right way to operate ? Or am I required to retain and pay taxes during the year as a S Corp for my W2 income?

TurboTax Business Windows

PatriciaV

Yes, you are required to pay Social Security and Medicare as the employer and withhold federal income tax, Social Security, and Medicare on behalf of the employee. You may also be required to pay state unemployment insurance and state payroll taxes.

For more information, see IRS Employment Taxes.

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