Schedule C State Payroll Taxes

Forum|Forum|6 years ago
April 22, 2020
11 replies
38 views

Can a single member LLC that files a Schedule C deduct the employer portion of employee's state wages?

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dascpa

Level 11

Why wouldn't any entity be allowed to deduct gross payroll and employer payroll taxes (FICA/FUTA/SUI)? It's an ordinary and necessary business expense. Please respond with a reason you think they should not be deducting this,

M

me-carneyAuthor

Level 4

I don't think that they shouldn't. I was checking to make certain that state employer taxes are deductible. I know federal are... I checked regulations and couldn't find anything specific to state employer payroll tax deductions for a Schedule C.

dkh

Level 15

Why specific to a Schedule C ? Deductibility would be same for any business regardless of entity classification. Schedule C, SCorp, Multi Member LLC, Partnerships. Gross Wages + employer FICA match + federal and state unemployment taxes