SMLLC Payroll

Discussion in 'Starting a Business' started by Danielpmarsh, Oct 7, 2010.

  1. Danielpmarsh

    Danielpmarsh
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    Person is using Quickbooks financial software and all business expenses are paid out of this account via Quicken Bill Pay. He wants to learn how to issue a paycheck to himself with all appropriate Fed, SS, Medicare and State deductions.
     
  2. Fergal

    Fergal
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    Welcome to our business forum Danielpmarsh, is that a question or a statement?
     
  3. Danielpmarsh

    Danielpmarsh
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    He wants to learn how to issue a paycheck to himself with all appropriate Fed, SS, Medicare and State deductions. Any good suggestions?
     
  4. Fergal

    Fergal
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    What country or state is the business based in?
     
  5. ArcSine

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    Daniel, I'll take a shot with a couple of assumptions, in the chance that it might help. So disregard if the assumptions miss the mark.

    Your use of "SMLLC" makes me think you're in the US, and dealing with a single-member LLC. If so, keep in mind that a partner (aka "member") of an LLC does not take 'paychecks' in the employee sense of the word. LLC owners receive draws (distributions of profits as cash flow permits), but such draws do not have payroll taxes computed and/or withheld. Also, these draws are not reported on quarterly payroll reports.

    This is true whether it's a one- or multi-owner LLC. Compensation paid to an employee of the LLC, OTOH (who works for the biz but doesn't own any equity) is subject to payroll taxes and withholdings.

    The tax obligations of an LLC partner / owner are not covered via payroll withholdings, but rather through quarterly estimate payments the partner remits individually (federal, and state when applicable).
     

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