S Corp Salary - Schedule SE


#1

I can find no definite clear cut answer on how to handle a S Corp return prep with the officer taking no salary.


#2

It depends. If the owner took no salary but also took no cash distribution and it was clear the business was not in a position to do so (insufficient cash flow) then that’s defend-able. But, if the owner did take cash but did not take payroll wages, I would prepare a 941 (and 940/W2 next month) or amend the 941s that were submitted and have the owner remit the tax withholding. Is that what your question is?