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February 20, 2025
Question

Subchapter S / LLC Payroll Tax Deductions

  • February 20, 2025
  • 1 reply
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I have an LLC and converted to subchapter S status in 2024.  I paid no salary during the year, but paid myself a bonus in December 2024.  I remitted the employer portion of taxes (social security, medicare, unemployment, etc) in January 2025.  I am a cash basis business.  Do I deduct those taxes on my 1120S in 2024 or 2025?

1 reply

February 20, 2025

As a cash basis taxpayer you deduct payroll taxes in the year that you paid them.  So for you 2025.

 

@throte 

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