Let say shareholder is also same person who manage the corporation, should he/she requires for W2? can u pay 1099MISC to shareholder who is also same person who manage the business? so by end of the year, this person receive schedule K1 and 1099MISC? would that possible or not?
Best Answer Click here
This discussion has been locked. New comments cannot be posted on this discussion anymore. Start a new discussion
I would look to the proper classification as an employee v. independent contract. Here is an IRS resource for making the determination: https://www.irs.gov/pub/irs-pdf/p1779.pdf
If the shareholder has a separate management company that manages the corporation, then a 1099-MISC would be issued. 1099-MISC would go to a legal entity or if a sole proprietorship then to the individual.
Thank you,
Mike D'Avolio
Intuit
Not possible
SCorp Owner / Managers are required to be paid a reasonable compensation, paid through W2 wages. This does not preclude them from also receiving payments for contract work that is un-related to the normal business operations (SCorp is a plumbing business, Owner also does IT support, owner provides IT support and to SCorp). Related to 199A, both the W2 and 1099 work is a deduction to arrive at QBI and the 1099 work, it has been suggested, cannot be included in the indivduals QBI figures (IE deducted from his Schedule C QBI figure).
I would look to the proper classification as an employee v. independent contract. Here is an IRS resource for making the determination: https://www.irs.gov/pub/irs-pdf/p1779.pdf
If the shareholder has a separate management company that manages the corporation, then a 1099-MISC would be issued. 1099-MISC would go to a legal entity or if a sole proprietorship then to the individual.
Thank you,
Mike D'Avolio
Intuit
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.