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Is the client withholding taxes from you?
Hi jimcalle!
Good day, and welcome to the QuickBooks Community!
It appears that your client is withholding your taxes. I suggest contacting them to inquire about the reason behind the fluctuation in your deductions, despite receiving the same monthly payment.
Additionally, seeking assistance from an accounting professional can be beneficial in accurately calculating your taxes and ensuring that you report the correct figures to the tax agencies.
Feel free to go back to this thread if you have other questions in mind. Take care and have a good one!
Hi, thanks for your response. No, my client is not withholding taxes. They pay a lump sum to my business and I - via Quickbooks Payroll - withhold and pay my own taxes and pay myself. But for some reason the amounts being withheld and paid in taxes and being paid to me is changing from month to month. These are not changes I have made.
Thanks for responding. No, my client sends my corporation a lump sum amount based on our contract. My corp - via QuickBooks Payroll - then withholds and pays taxes and sends a payroll check to me. But the amounts are changing each month and I am not the one making the changes.
I'm not sure if you're aware but sole proprietors cannot be on payroll as an employee. You should be paying yourself via an owner's Draw and paying estimated income taxes personally.
Sorry. I am my corporation's sole employee. I used "sole proprietor" to convey that I was the only employee without realizing its accounting and tax significance.
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