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Are you currently paying yourself a salary from the LLC? If so, then I assume you have already registered with the State of California Employment Development Department?
I assume you already have an EIN (employer identification number) for your LLC. If that is the case, there is no need to register anything else with the IRS. You will, however, have to register with the California Employment Development Department once you start paying wages. I am giving you a link to that website that contains the information you need and a link to register on line.
You can begin paying your husband a salary as soon as you want to. When you pay his salary, you must withhold federal and state income taxes as well as his portion of the social security and medicare taxes. The LLC itself will be responsible for payment of the employer's portion of social security and medicare taxes. (Employer and employee each pay a total of 7.65% on gross earnings).
The LLC will be responsible for filing quarterly payroll taxes with both the IRS and the state of California. For the IRS your taxes will be filed using Form 941. For the state of California, your payroll taxes will be filed using Form DE 88. These payments can be made by mail or electronically. The payroll taxes will be withheld by the LLC and will be paid by the LLC.
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Hello again kathyweeeks,
Payroll taxes are income taxes and social security and medicare taxes combined.
Your payroll taxes will be filed quarterly. Your payroll taxes to the IRS will consist of the federal income tax withheld from your husband's salary, the social security and medicare taxes withheld from his salary, and the employer's portion of social security and medicare taxes. Your payroll taxes to the state of California will be the California state income taxes withheld from your husband's salary.
As you issue payroll checks for your husband, you need to keep an accounting of how much is withheld from each check for each type of tax. At the end of the quarter, you will then pay the total amount held for each type of tax to either the IRS or the state of California as appropriate.
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You do not have to have a formal payroll check as you are referring to, but you do need to keep an accurate accounting of how much was withheld from each check for each type of tax. If the employee were not your husband, then you would have to give the employee a detailed accounting of what was withheld from their check, but under the circumstances, he will already have access to that information through your accounting records.
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