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Merlo
Merlo, Accountant
Category: Tax
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Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I own an LLC in california, and want to make my husband a ...

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I own an LLC in california, and want to make my husband a W2 employee of the company officially so we can qualify as a "group" for health insurance purposes. I need to do this NOW, so our "group" will fall into guaranteed issue open enrollment for blue shield during october. please tell me what forms I have to fill out for IRS and california and how to start paying him and withholding immediately so we can qualify for the insurance in October. thank you.
Submitted: 6 years ago.
Category: Tax
Expert:  Merlo replied 6 years ago.

HelloCustomer

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?

Customer: replied 6 years ago.
Reply to Merlo's Post: No, no salary, no registration as of yet for any employees or salaries. I ned to know the steps and the forms state and federal level. thanks
Expert:  Merlo replied 6 years ago.

Hello againCustomer

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.

http://www.edd.ca.gov/Payroll_Taxes/Am_I_Required_to_Register_as_an_Employer.htm

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.

If this has been helpful please press the Accept button. Positive feedback is also appreciated.

Thank you.

Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Merlo and other Tax Specialists are ready to help you
Customer: replied 6 years ago.
Reply to Merlo's Post: Merlo, So, as of August 1, I should just write my husband a check and then file the quarterly forms each quarter?   Can I calculate and pay SS, medicare, fed and state income tax   quarterly all at once?
Are payroll taxes what you are referring to when you say 7.65 % social security and medicare? Or are there additional payroll taxes?
Expert:  Merlo replied 6 years ago.

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.

If this has been helpful, please press the Accept button. Positive feedback is also appreciated.

Thank you.

Customer: replied 6 years ago.
Reply to Merlo's Post: One more question- does his check legally have to detail the witholdings like a standard payroll check we all have seen before, or can I just keep the accounting myself in a record book, and not detail it on his monthly checks?
Expert:  Merlo replied 6 years ago.

HelloCustomer

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.

If this was helpful please press the Accept button.

Thanks again.

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