A new client's W3 is under a different EIN than the corporation's EIN. When I asked why the numbers didn't match, he said that the payroll is under an LLC pass through entity. Has anyone ever experienced this? Last year's tax return included the payroll in the 1120 tax return.
Were the checks actually written by the corporation or the LLC? Dealing with tax clients is like bringing back old Art Linkletter TV shows --------"Clients say the Darndest Things".
I assume by the LLC since the W2s are all from the LLC
It was run under the LLC, his prior accountant advised him to do it this way for liability reasons...I advised him to run it under the Corp going forward.
I know of a similar situation....the LLC for processing payroll was done to take advantage of Amish employees with F4029s. LLC members had F4029s (SSExempt approval for Religious reasons) thereby any employees with the approved F4029s did not have SS/Medicare w/held. The LLC then charged the SCorp for leased employees. Saved the SCorp lots of payroll taxes.
BTW - don't forget to file that LLC return.
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.