S Corp year end balance sheet and payroll taxes

hemakumari-itsno · ‎December 14, 2022

Hi Team,

I have a single owner/employee S-corp. Using QB Online payroll to run my payroll and using cash basis accounting.

My question is:
The payroll taxes will be deducted from bank account in January, but based on cash accounting, my understanding is, we can consider only transactions occurred during the calendar year, which impacts the balance sheet we need to submit while filing 1020-S.

In other words, let us say if 1000$ payroll tax will be deducted in Jan from bank account and not included in 2022 balance sheet, I have to treat this 1000$ towards "distribution" and including it in my K1 and pay taxes right? Can someone please advise?

Rustler · ‎December 15, 2022

Not sure what you want advice on, you chose cash basis and you seem to understand it just fine.

Rustler · ‎December 15, 2022

You chose cash basis, you understand how it works

what do you want advice on

hemakumari-itsno · ‎December 15, 2022

Hi Rustler,

I am looking for some guidance on specifically this part:

let us say if 1000$ payroll tax will be deducted in Jan from bank account and not included in 2022 balance sheet, I have to treat this 1000$ towards "distribution" and including it in my K1 and pay taxes.

OR

Balance sheet we submit with 1020-S should show this payroll tax as part of December transaction AND don't include it in distribution ?

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S Corp year end balance sheet and payroll taxes