Officer compensation on a C corporation, how to report it?

[Rafael]

Hello,

My client owns a small yard maintenance company. He is the only owner of the corporation and hi performs most of the company work.

In February of 2012 he incorporated the company. He started paying employees through payroll, but did not pay himself as an officer. Hi just withdrew cash without paying payroll tax on it. What is the correct way to report his pay as officer of the corporation?

Can he amended the payroll for 2012 and pays the payroll tax that way or is there and easier way to do that?

Thanks!

 

[The Finance Writer]

When this happens in my work, I inform the business owner that he should return the money he has stolen from the corporation. However, you can correct his trouble by amending payroll tax reports for prior periods. To accomplish this, you need to "gross up" the amounts he withdrew to determine his gross wages. You will of course need to know the dates he received each amount of unreported compensation. The corporation then owes past due payroll taxes plus penalties.

 

[allan]

can he fill a 1099-misc to himself, inside w-2 to himself?

 

[Bad Medicine]

Hello,

My client owns a small yard maintenance company. He is the only owner of the corporation and hi performs most of the company work.

In February of 2012 he incorporated the company. He started paying employees through payroll, but did not pay himself as an officer. Hi just withdrew cash without paying payroll tax on it. What is the correct way to report his pay as officer of the corporation?

Can he amended the payroll for 2012 and pays the payroll tax that way or is there and easier way to do that?

Thanks!

I'm totally new to this and not an accountant, so you'd be really dumb to listen to anything I say (REALLY dumb!) but my understanding is money only leaves the corporation in a few ways - dividends and salary being the ways that pertain to this situation (unless he's loaning himself money which is something else). I'd ask a tax accountant.