How to report wages for single owner LLC filing Sch C

[Linda Mathey]

Does anyone out there know how to report quarterly wages and withholdings for an LLC---single owner---filing a Schedule C? Client received notice from IRS not to use Form 941.

Any help would be appreciated.

[GeorgeM]

Does anyone out there know how to report quarterly wages and withholdings for an LLC---single owner---filing a Schedule C? Client received notice from IRS not to use Form 941.

Any help would be appreciated.

A single owner, sold proprietorship cna not pay himself wages. All income is on Schedule C and profit is SE wages.

Did he pay in withholding taxes?

[jklcpa]

Maybe Linda's question is if the sole prop LLC is paying employees other than himself. Why wouldn't the the Sch C business use the 941? Does the Sch C business have an EIN?

Is it's possible that the IRS is looking for annual Form 944, if the client indicated that the taxes would be below threshold?

Sorry I don't really have an answer for you.

[Linda Mathey]

Maybe Linda's question is if the sole prop LLC is paying employees other than himself. Why wouldn't the the Sch C business use the 941? Does the Sch C business have an EIN?

Is it's possible that the IRS is looking for annual Form 944, if the client indicated that the taxes would be below threshold?

Sorry I don't really have an answer for you.

Sorry I was not clear earlier. He owns a bar & lounge. He has employees. He withholds both federal and state taxes as well as social security taxes. I told him to file a 941 for 4th qtr 2007 (his first quarter in business). Now he got a notice telling him not to file 941. No, we did not tell them income would be below threshold. Guess I will have to 'bite the bullet" and call IRS.

I do not do his payroll taxes but I think he may have also paid himself and withheld. Once I check how do we correct that if that is the case?

[Linda]

Sorry I was not clear earlier. He owns a bar & lounge. He has employees. He withholds both federal and state taxes as well as social security taxes. I told him to file a 941 for 4th qtr 2007 (his first quarter in business). Now he got a notice telling him not to file 941. No, we did not tell them income would be below threshold. Guess I will have to 'bite the bullet" and call IRS.

I do not do his payroll taxes but I think he may have also paid himself and withheld. Once I check how do we correct that if that is the case?

Amend Q4 941/payroll tax reports to remove single member from payroll reporting.

[SunTaxMan]

May I suggest your FIRST course of action is to ask the employer to give you the notice from IRS that says do not file 941?

I would want to read it myself and then think about what caused it and how to respond.

Apart from this, if YOU are not doing the payroll, the question should be directed to whomever IS doing the payroll.

The left hand not knowing what the right hand is doing is not a good situation.

Edit Thought......................

I guess I am thinking that whoever is doing the payroll should be (1) doing the 941s, SUTA, etc., and (2) be responsible to deal with this notice.

[Gail in Virginia]

And when you read the notice, is it possible they are telling him to file a 944 instead of a 941? They are pretty insistent on getting the one they want you to file.

[Linda Mathey]

Thanks for the feedback. I will look at the notice. Unfortunately the person doing the taxes, payroll, etc. is his girlfriend with no background in tax. I talked with her and she did withhold for him and prepared a W-2. They filed his return and picked up the W-2 income and withholdings.

A mess...not sure I want to tackle it unless they get a notice on the 1040 and then we can talk about it.