How do I w-2 myself from a single person s-corp?

[heartbrokenangel]

I've never done this. I know i can just send the distributions in a regular bank transfer to my checking account, but i dont know the process of w-2 payments. Are there forms to fill out? Do i have to use software for this? Do i have to do a whole song and dance to employ myself? Thanks in advance.

 

[rottenrobbe]

@heartbrokenangel Yes, there are forms: federal, state, and unemployment. Those are done quarterly (or possibly annually) and then you also file a W3/W2 form at year end.

There is a lot of different software you can use or companies you can hire. If you pay a firm to do your corporate tax return they probably also do this.

 

[holly789]

@heartbrokenangel did you pay yourself a salary with taxes withheld? because that is what generates the W2. you need a payroll company.

 

[heartbrokenangel]

@holly789 Ah ok so this isnt something i can do myself.

 

[holly789]

@heartbrokenangel well, you need to be able to calculate and withhold federal, social security, medicare, state and whatever stupid thing the state has (MA has PFML), as well as federal and state unemployment, then remit all of the monthly and quarterly tax forms to the various agencies showing that you withheld and paid those taxes, and then at year end a W2 totalling the salary and all of the above taxes is produced and sent to not only the IRS, but also the SSA and the state, as well as the employee. all of which makes it so that the payroll company is actually cheap. (unless you want to learn and apply all of that and be aware that the rules change on a regular basis and if you get it wrong there are penalties).

Gusto has a single member S corp plan thats pretty cheap- I think around $300 per year.

 

[heartbrokenangel]

@holly789 Cool i'll do that. Does anything get sent to the state in florida since they have no state tax?

 

[holly789]

@heartbrokenangel yes. florida has reemployment

 

[mamacosp]

@heartbrokenangel You need a payroll provider.

Technically you can do all this yourself but it is not worth your time, payroll is a commodity and a fairly cheap one at that.

 

[psalms119]

@heartbrokenangel Try Gusto for payroll. You have to apply for an employer registration (separate from an EIN, specific to payroll).

Payroll set up requires the initial registration, making sure you are properly setting up withholdings for FICA and state-level payroll taxes, setting yourself up as an employee and setting a payroll cadence. Payroll also requires quarterly payroll tax returns to be filed. Gusto would automate most of this ongoing maintenance for you.

It's critical to have a salary run through the S Corp if you will also be taking distributions!