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December 21, 2018
Question

How do I process a one time paycheck to myself for my S-Corp?

  • December 21, 2018
  • 7 replies
  • 38 views

I am the owner and only employee of my company. I made $30k profit this year and haven't paid myself anything so far. I want to pay myself $6k salary and $6k bonus to and be compliant with IRS. 

 

How do I do a 1 time payroll check. If I add myself as an employee and give myself $6k salary and try to run a payroll it is dividing that by 12 months and only trying to pay me a few hundred dollars?

7 replies

qbteachmt
Level 11
December 21, 2018

This is not compliant with the IRS: "I want to pay myself $6k salary and $6k bonus to and be compliant with IRS. "

 

You cannot take the equal amount as Bonus and underpay yourself. To Comply = Market Based reasonable compensation for services performed.

 

"How do I do a 1 time payroll check. If I add myself as an employee and give myself $6k salary and try to run a payroll it is dividing that by 12 months and only trying to pay me a few hundred dollars?"

 

You don't Divide a 1-time check. It's that one check, already.  You need to meet with your own CPA, because if the IRS catches this, you will be facing penalty and interest. They will recharacterize the other $6k as attempting to evade payroll taxes. That isn't legal.

Level 4
December 21, 2018

The pay period must be set at monthly. That is why it is dividing by 12.  Can't you overwrite the amount?

You are supposed to pay yourself a reasonable salary; which $12k is obviously not, if you worked full time in the business. 

 

nickbrAuthor
December 22, 2018

I have a full time W2 job outside of this business. This is the first time the business has made any money. I don't really have a need to get paid. I probably spend an hour every two days. 

Rustler
Level 15
December 23, 2018

@nickbr wrote:

I have a full time W2 job outside of this business. This is the first time the business has made any money. I don't really have a need to get paid. I probably spend an hour every two days. 


don't get tax advice, or legal advice from unknown folks on the net, see a tax accountant