Re: Create And Print PayRoll Reports

[candylady11]

I am in small business and our accountant tells us that as a sole proprietor with no employees, we cannot do payroll. Our relative tells us otherwise. Also our relative told us that we shouldn't be filing a schedule "c" on our tax return. I thought that all small business owners file schedule "C". Does anyone know about payroll or schedule "C"? I am very confused. Our relative is trying to lead us to believe our accountant is inefficient. Please help!
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Arizona Payroll Services

[szlamany]

As absurd as it is that you came to this forum to post a question about taxes...

btw - welcome to the forum

You - as a sole proprietor - do not do payroll. Payroll entails weekly/monthly payments of federal withholding and an "employee" share and "employer" share of FICA and Medicare to the government.

You are not an employer of yourself.

If you hired someone - you would get a EIN (employer identification number) and then you could withhold taxes as noted above on your employees.

When I was an s-corporation we were forced to treat ourselves as employees. That was not a beneficial position to be in - both the filing burden and the additional tax burden.

As a sole-prop you should be doing schedule SE (?if I remember correctly) quarterly to pay estimated taxes and then your annual 1040 to reconcile the whole mess.

[Hack]

Split into its own thread and moved to General Developer

[RobDog888]

I would go with the advice of the accountant as they should know what they are taling about.

If you are a sole proprieter then how many owners are there in your company?

[Hack]

And, CandyLady11, both RobDog888 and szlamany have some experience in working for themselves so their advice is born from experience.