A new client can to me with unpaid salary of $65K per year to be included in corporate business return. How can this be accounted for? Why or why not?

Forum|Forum|5 years ago
July 10, 2021
11 replies
50 views

s/b came not can

ProSeries Professional

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Just-Lisa-Now-

Intuit Community Champion

unpaid salary....if its unpaid, what do they want to include in the return?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

S

SID1Author

Level 3

Other operational expenses of up to $20K and also including rental loss of $25K. No income reported during this period.

Just-Lisa-Now-

Intuit Community Champion

@SID1 wrote:

Other operational expenses of up to $20K and also including rental loss of $25K. No income reported during this period.

@SID1 are you the same person as the one that asked the question? What does unpaid salary mean?

Maybe you need to start at the beginning of the situation and explain what you're working on.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

qbteachmt

Level 15

"Why or why not?"

For 2020, was any payroll run at all? Because you simply stated "salary" which would be taxable wages, which means there would be payroll taxes and payroll reporting, even if there was no Takehome.

And perhaps we should point out this is July 2021.

What sort of entity is this, and why does it have a Rental Loss? Because that doesn't explain there were no funds available to create required payroll. Tax loss isn't going to prevent funds being available, in most cases.

Were there distributions (S Corp) or Dividends? Were there other employees who did get paid their payroll? Is the person who did not get paid, one of the shareholders?

More details always help.

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