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Author: Jeanwa Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121106  
Subject: Re: Tax Help Date: 2/19/2005 10:37 AM
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3. Now that we've recieved our first payment, I need to cut my husband a paycheck. We are not sure how many exemptions we want him to put on his W-4 because we've had a lot of changes recently and aren't sure what our deductions will be and also aren't sure how much contract work either of us will be doing this year, we should have a better idea in the next week or so (based on whether a long-term contract materializes and also when I figure out what our deductions for last year are, that will help) - so my question is: how long can I legally wait from the time I recieve payment from the customer til the time I cut him his check (we aren't in a hurry to have the money, jsut want to do everything right.)

I haven't answered before, since I don't know that much about S-Corps and thought someone else would answer.

Whoever set up the SCorp should, IMHO, have given you this information.

4. What taxes do I have to pay and forms do I have to file when I pay him? I know 7.5% SS, and I can pay that online right?

You need to get circular E and read it for the federal stuff. Federal Withholding and Social Security are filed on form 941. I would suggest you get the form and it's instructions.

The SS amount is 7.5% and the medicare .0145 (I think) for the amount deducted from the employees pay. The employer (the Scorp) matches these amounts. I haven't used the online pay method, but it's there.

Is it due immediately when I cut him the check? It depends on the amount. I forget the actual amounts, but some are due within 3 days of the paydate, some by the 15th of the month following the month that the payment was made, it the amount is pretty small it's not due until the end of the quarter. Read the IRS publications.


what about unemployment tax? You will have to talk to your state office for the state unemployment. The federal is filed on a fore 940, its, but depending on the amount monthly deposits may be required. Get the 940 form and it's instructions.

anything else?In WA state, State disability insurance. Contact the applicable department in your state.

5. Any recomendations for good software to handle payroll, etc?

I personally haven't found a good payroll program for the money I want to spend.

I just use a spread sheet in Lotus, but Excell, or quatropro or works would work as well.

Jean
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