How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Stephen G. Your Own Question
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6103
Experience:  Extensive Experience with Tax, Financial & Estate Issues
Type Your Tax Question Here...
Stephen G. is online now
A new question is answered every 9 seconds

My single member LLC started this year electing to be taxed

Resolved Question:

My single member LLC started this year electing to be taxed as an S Corp.

When I now pay myself, payroll taxes are taken out, and the business also pays payroll taxes on top of what is taken out of my check.

Does that mean that I'm really being taxed twice? I'm the only officer of the business right now.

When I file my taxes next year, will the taxes taken out of my paycheck and the the payroll taxes the business paid on top of that count towards the possibility of a refund?
Submitted: 4 years ago.
Category: Tax
Expert:  Stephen G. replied 4 years ago.

Stephen E. Grizey :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.


Hi Stephen, I'm not seeing the answer in the chat. Is there a different place to see the answer?

Expert:  Stephen G. replied 4 years ago.

I apologize, your chat session got changed to a Q/A format as another Expert tried to answer the question while I was typing my response & it got lost in cyberspace.

I will do it over if you bear with me.
Customer: replied 4 years ago.
Okay thanks. No problem.
Expert:  Stephen G. replied 4 years ago.

OK, this is the 3rd time I have written this...................

You aren't paying your taxes twice.

The S-Corp withholding income taxes from your gross pay and submitting them to the appropriate taxing authorities. The gross pay is the corporate expense. The S-Corp does not pay any of its own income taxes; that's the main purpose of the S-Corp. You get full credit on your personal returns for any income tax withheld from your payroll.

The S-Corp also withholds your share of Social Security & Medicare tax & also has to pay its share which is 2% higher than your share due to the tax reduction in those payroll taxes in 2011 and now for the entire year of 2012.

The funding for this "tax break" will come out of the general tax fund, thus the Social Security Trust fund will be reimbursed for this reduction in payroll withholding for employees.

The S-Corp also pays a relatively small amount in unemployment taxes which are not usually shared by the employee, depending upon what state you reside in.
Stephen G. and other Tax Specialists are ready to help you
Customer: replied 4 years ago.
I see. So the extra that the S corp pays relates to the Social Security and Medicare (maybe some unemployment).

Expert:  Stephen G. replied 4 years ago.
Yes. Exactly.

Please remember to "ACCEPT". Feedback, if you have time, & bonuses, where you feel they are warranted, are always most appreciated.
Stephen G. and other Tax Specialists are ready to help you