Level 4

Question

1065 help

6 replies
28 views

This is kind of confusing!. i have a client in where he has payroll liabilities listed both as a deduction on his 1065 and on sch l other liabilities . i am confused as i know federal payroll is a liability.

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dkh

Level 15

If the client has payroll - there could/would be payroll tax expense and payroll liabilities.

D

dmufeed2Author

Level 4

But for payroll liability shouldn’t be listed as a other liabilities on schedule L ir just a regular expense on the deduction screen

abctax55

Level 15

TOTAL liability, unpaid at end of year = Balance sheet

TOTAL expense = income statement.

All of this should be on the working trial balance and is Accounting 101

HumanKind... Be Both

abctax55

Level 15

Liability = amounts withheld from employEE plus the employER taxes.

Expense = only the employER taxes

HumanKind... Be Both

D

dmufeed2Author

Level 4

So it will be entered as a normal expense and not a a current liability on sch L

abctax55

Level 15

And after looking at your posts from yesterday, I will echo Phoebe that you need to find local, mentoring help. Partnership & S-Corp return preparation is complicated, and can't be learned by asking questions of folks on a forum.

The Tax Book has a business series that has a step-by-step example of entity preparation (or, it used to...). I suggest you purchase it, or the Quick Finder version.

HumanKind... Be Both

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