covid-19 and owners salaries

Mrfixit88 · ‎August 24, 2020

our business is an s-corp and we take a monthly salary. 2nd quarter, we had very little business and have not taken a salary since. Did we still need to file a 941 even though we had no payroll? If so, can we file for 2nd quarter now? Also should we be paying ourselves something just to show we had some kind of income coming in?

BigRedConsulting · ‎August 25, 2020

- Yes, you need to file a 941 each quarter, whether or not you have any payroll to report.

- Since you're late, file the second quarter ASAP, just as you would have if you were on time.

- As the owner you don't need to pay yourself consistently if you don't want to. (If you're a corporate shareholder "owner" there are rules that state you must take a reasonable salary, but I think they don't address the timeliness of that salary, only that is happens each year.)

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BigRedConsulting · ‎August 25, 2020

- Yes, you need to file a 941 each quarter, whether or not you have any payroll to report.

- Since you're late, file the second quarter ASAP, just as you would have if you were on time.

- As the owner you don't need to pay yourself consistently if you don't want to. (If you're a corporate shareholder "owner" there are rules that state you must take a reasonable salary, but I think they don't address the timeliness of that salary, only that is happens each year.)

Mrfixit88 · ‎August 26, 2020

Thank you BigRed

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covid-19 and owners salaries