Do payroll taxes affect Form 1120 on a corporate tax return?
Do payroll taxes affect Form 1120 on a corporate tax return?
I am working on my first corporate tax return and recorded payroll taxes paid for the year while doing their bookkeeping. From preparing the tax return, it appears that payroll taxes do not go on the form 1120. Is this true? And if so or not, please explain. No estimated taxes were recorded for that year only payroll taxes. Please help????
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cr1sa: Payroll taxes are paid both by the employer and the employee. The portion paid by the employee is basically deducted as salary - These are your FICA and Medicare taxes on your paystub. But, the portion paid by the employer is deducted on the 1120.
2007-06-27 18:04:31
cr1sa: Payroll taxes are paid both by the employer and the employee. The portion paid by the employee is basically deducted as salary - These are your FICA and Medicare taxes on your paystub. But, the portion paid by the employer is deducted on the 1120.
2007-06-27 18:04:31
RopeResQ: Payroll taxes do not go on the 1120. It's an in and out transaction. Remember, the money is withheld from the employee and a credit is made to a liability account. The company then remits the taxes due and credits the accrual.
Gross compensation is included on line 13, but executive compensation needs to be pulled out and put on line 12.
2007-06-27 18:11:45
2007-06-27 18:11:45
smh60437: Payroll taxes, net of the amount withheld from employees, are reported on the first page of form 1120 on the line that says "Taxes Paid". You might also include some, or all, as part of your cost of goods sold on page two. Call the item "Payroll and Payroll taxes".
The employer share of taxes is deductible under IRC 162 as an ordinary trade or business deduction.
2007-06-27 20:14:26
2007-06-27 20:14:26