Can a single member LLC that files a Schedule C deduct the employer portion of employee's state wages?
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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,
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.
What employer portion of state wages? Theres state unemployment...what else doe the employer pay to state?
Unemployment and disability
The employee pays the disability, not the employer.
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
Is the Business Owner also the person getting paid through Payroll?
No.
According to payroll reports there is an employer contribution portion of disability.
Income tax is not deductible for a sole proprietorship so I was simply asking about state employer payroll tax as I could not find the regulation.
New Jersey workers and employers contribute to the cost of the temporary disability program. The contribution rate for employers varies from 0.10% to 0.75%.
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