#Turbotax for s corp 2015 software#

Payment of the client's personal car loan ($5000).

Purchase of a laptop computer (which cost $3000).

Payments to the CPA for tax accounting services over the year for $2000.

Payments to Staples totaling $5000 over the year for office supplies.

Payment of $3493 in associated payroll taxes.

Payment of $40,000 in shareholder-employee wages.

Receipt of $100,000 of consulting revenue.

Suppose, for example, that a small business has the following items: If you aren't using an accounting program (and some small-service businesses can get by with a shoebox-style accounting system), you can use an Excel workbook or even columnar paper to construct a simple table of income and expenses. (This reconciliation will quite possibly catch and correct any bookkeeping errors you have made over the year.) Also, be sure to tell the tax return preparer about any expenditures that don't appear on your profit and loss statement for example, if you purchased assets that need to be depreciated and those assets don't appear on the income statement. Be sure to reconcile your bank accounts before you produce the profit and loss statement. The command will usually be entitled something like 'profit-and-loss statement' or 'income statement'.ДЄ couple of tips, however, about generating this profit and loss statement should be made. If you're using an accounting program such as Quicken or QuickBooks, you can probably prepare the profit and loss statement by clicking a menu command.

If an S corporation generates revenues of less than $250,000 a year and owns total assets of less than $250,000, the only real bookkeeping work required in order to prepare an S corp is the generation of a simple profit and loss statement. Bookkeeping Preparation for an S Corporation Tax Return

#Turbotax for s corp 2015 software#

You can get forms and instructions for all of these payroll accounting tasks from the Internal Revenue Service web site, You can also often get forms and sometimes instructions from the local office supplies store and from your accounting software provider (such as the Intuit QuickBooks folks). Finally, S corporation payroll requires the preparation and distribution of W-2 and W-3 forms which report to employees, the Social Security Administration, and (indirectly) to the Internal Revenue Service what wages and taxes an employer has paid over the year. S corporation payroll accounting also requires the filing of an annual 940 payroll tax return to report and pay federal unemployment tax (also known by the acronym FUTA). This requirement remains true even when the S corporation has a single employee who happens to be sole shareholder of the corporation.ДЄt a federal level, payroll accounting requires an S corporation to file quarterly 941 payroll tax returns which report on the wages paid to employees, the Social Security and Medicare taxes that the employer owes on those wages, and the taxes withheld from the employee's gross wages for federal income taxes, Social Security taxes, and Medicare taxes. As a general rule, an active S corporation must pay its employee a reasonable wage. The first bit of tax accounting required for an S corporation is payroll accounting for the corporation's employees. Typical S Corporation Tax Returns RequiredДЄs compared to a sole proprietorship or a one-member limited liability company operating as a sole proprietorship for tax purposes, an S corporation requires quite bit of additional tax accounting. Accordingly, we'll talk briefly about what work you and your bookkeeper or accountant need to do in order to prepare an S corporation tax return. S corporation tax returns represent a both a big chunk of work as well as a big tax saving opportunity for small businesses.

How Does S Corporation Tax Return Preparation Work?