I want to pay all state, federal taxes and contributions on payroll, but not the paycheck to myself.

nickstiv · ‎March 10, 2020

I'm new to quickbooks, i'm switching from an LLC to an S-Corp i bought Quickbooks Desktop and a year subscription to payroll. Due to reasons that i don't want to get into, for this year I need to look like i'm paying myself, but not actually pay myself. I am the only person in the company.

I want to electronically pay all state and federal payroll taxes, solo401k contributions, health insurance payments, etc , but not actually send any money into my personal account for a paycheck.

How do I do this?

john-pero · ‎March 10, 2020

As a Subchapter S you must place yourself on payroll and pay yourself (funds dependent) what the IRS considers a "reasonable wage" before you can distribute any ordinary distributions. What you are talking about, returning your paycheck to the company is all well and good but you need a "paper" trail of doing so.

It is best if you actually print checks, deposit to a personal account and then make a shareholder loan back to the company (or buy more shares -increased equity).; but you can accomplish the same by paying yourself from a clearing account and then digitally replenish the clearing account from equity/borrowed funds.

If you have the cash to do so you could easily withhold all of your net pay for other after tax retirement accounts.

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I want to pay all state, federal taxes and contributions on payroll, but not the paycheck to myself.

I want to pay all state, federal taxes and contributions on payroll, but not the paycheck to myself.

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