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Level 4
December 7, 2019
Solved

How to report Officer Compensation?

  • December 7, 2019
  • 1 reply
  • 27 views

In regards to form 1120 Office compensation, I have a client who refuses to use payroll, therefore is it ok to report his income one line  12 Form 1120, then carry this income to his personal directly on schedule C, so he can pay the SE taxes?

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Best answer by IRonMaN

No, it isn't ok.  He needs to pay payroll.  If he isn't willing to follow the rules you need to consider referring to him as a former client.

1 reply

IRonMaN
IRonMaNAnswer
Level 15
December 7, 2019

No, it isn't ok.  He needs to pay payroll.  If he isn't willing to follow the rules you need to consider referring to him as a former client.

Slava Ukraini!
onestop73Author
Level 4
December 7, 2019
Thank you for that information, learning a lot here.