W2 for single employee S-Corp

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Dieharder
Posts: 976
Joined: Mon Apr 02, 2007 6:22 pm

W2 for single employee S-Corp

Post by Dieharder » Thu Jan 12, 2017 7:39 pm

What is the best method to create and file W2 for single employee S-Corp. I am the only employee of my company this year and paid myself through automated direct deposits from QuckBooks with Intuit Payroll service. I have filed state, federal, social sec, medicare, and umemployment taxes through QuickBooks online service as well as estimated taxes through direct pay. Now I need to do year end reporting on the income. I believe it is just the W2 forms for federal and state. After that I intend to do a dry-run of my taxes with TurboTax for Business which I have purchased through Costco at a discount. I do have the services of a CPA if I need to, but I like to do maximum possible myself so as to ensure everything is going well and to keep costs low. QuickBooks has the option to do this, I haven't contacted them yet to see if I have to purchase the basic minimum of 10 W2 forms. Also, I like to know since I did payroll through it, will QB generate all the required numbers for the W2.

How do you create and file W2, for those out there that are single employee S-Corp owners?

DSInvestor
Posts: 10591
Joined: Sat Oct 04, 2008 11:42 am

Re: W2 for single employee S-Corp

Post by DSInvestor » Thu Jan 12, 2017 9:03 pm

I imagine the Quickbooks payroll service will handle the W-2s (i.e. print out copies for you and for filing to IRS etc).

I suggest getting your S-Corp tax return (1120S) prepared by a CPA for at least the first year. Since you already the software, you can give it a shot in parallel. I am very familiar with using tax software for individual tax returns but the S-Corp return is completely different and loaded with jargon. I had CPA do my 1120S for years and then did them my self when CPA retired. I was really happy to be able to reverse engineer prior year returns to see what numbers went where.

Remember that the tax filing deadline for S-Corps is 3/15 assuming you're a calendar year corporation.

Spirit Rider
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Joined: Fri Mar 02, 2007 2:39 pm

Re: W2 for single employee S-Corp

Post by Spirit Rider » Thu Jan 12, 2017 10:47 pm

Intuit Payroll can generate the W-2, but maybe not correctly for a 2% S-Corp shareholder-employee with the following circumstances.

There is special W-2 handling required for 2% S-Corp shareholder-employees where the S-Corp paid or reimbursed health insurance premiums and the S-Corp made HSA employer contributions. These must be included as compensation in W-2 Box 1 Wages, but not Box 3 Social Security Wages and not Box 5 Medicare Wages. Special consideration must also be given for Boxes 12 and 14 different than a statutory employee.

The last I knew Intuit Payroll did not handle this properly. You may need to have a CPA held you with the W-2. FYI, even some CPAs may not be aware of these issues. If this circumstance applies to you, you need to educate yourself.

The other option is to not run the health insurance premium or HSA contribution through the S-Corp, but this will subject them to FICA.

Dieharder
Posts: 976
Joined: Mon Apr 02, 2007 6:22 pm

Re: W2 for single employee S-Corp

Post by Dieharder » Thu Jan 12, 2017 10:57 pm

Thanks for the responses. I will check with QuickBooks payroll service for the W2, and go with CPA for the S-Corp taxes to be safe. I do not have health insurance premiums to worry about through the company, so that makes it easier.

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Artful Dodger
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Re: W2 for single employee S-Corp

Post by Artful Dodger » Fri Jan 13, 2017 6:37 pm

I have an S-Corp, and buy Turbo Tax Home & Business every year to do the W-2s and 1099s I issue. It is $90 - $100. There is a Turbo Tax Business ($150) which is a step up and has the 1120S form, but I prefer to pay a CPA to do mine, so I have someone to ask questions when needed.

danaht
Posts: 427
Joined: Sun Oct 18, 2015 11:28 am

Re: W2 for single employee S-Corp

Post by danaht » Fri Jan 13, 2017 6:55 pm

Spirit Rider wrote:Intuit Payroll can generate the W-2, but maybe not correctly for a 2% S-Corp shareholder-employee with the following circumstances.

There is special W-2 handling required for 2% S-Corp shareholder-employees where the S-Corp paid or reimbursed health insurance premiums and the S-Corp made HSA employer contributions. These must be included as compensation in W-2 Box 1 Wages, but not Box 3 Social Security Wages and not Box 5 Medicare Wages. Special consideration must also be given for Boxes 12 and 14 different than a statutory employee.

The last I knew Intuit Payroll did not handle this properly. You may need to have a CPA held you with the W-2. FYI, even some CPAs may not be aware of these issues. If this circumstance applies to you, you need to educate yourself.

The other option is to not run the health insurance premium or HSA contribution through the S-Corp, but this will subject them to FICA.


I can confirm that the basic Intuit payroll service (from Bank of America) currently handles the generation of the w2 properly for the s-corporation owner's >2% health premium correctly. However, there is currently no HSA option for a >2% owner in the Intuit payroll service. note: The SSA.GOV website allows you to generate and efile w2s quickly - and it's a free service.

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