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Stephanie B.
Stephanie B., Enrolled Agent
Category: Tax
Satisfied Customers: 556
Experience:  MTax, EA, QuickBooks Proadvisor. Over 15 years accounting and tax experience specializing in individual and small business.
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Need payroll tax and quickbooks expert.....the self employed

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Need payroll tax and quickbooks expert.....the self employed health insurance premiums for the officer of an S corp were not added to the W-2 but were paid by the corp and charged to distributions.....what "All" exact forms have to be amended and when Quickbooks ask "have you made the W-2 corrections.....which is the better to work with? using existing system data and putting in corrected info or correcting and refiling(assume this is best)....S Corp is also a GA Corp for state purposes

Stephanie B. :

Thank you for your question.

The 941s and 940 need to be corrected as well as the W-2/W-3. I personally would change the entries in payroll effective 1/1/12 so that everything flows properly through the QB system.

What I normally do is adjust the last paycheck of the year for the S-Corp health insurance premiums so there is only one change to make. Keep in mind when you do this, your federal and state withholding will change because this is income is taxable income. I just adjust them back to what they were prior to making the adjustment for the health insurance premium since the insurance will be a deduction on the front of the 1040 and reduce AGI.

Customer:

I assume that the Georgia Dept of Labor DOL 4N and the G-7 Quarterly taxes withheld must also be changed.?..do you mean 12/31/12 above ...if I make the change 01/01/12 I will be amending 1st Qtr 941.....I don't have to withhold more money because it will be a wash correct.? Ijust reclass the distributions to wages....and so I answer the QB question "Yes" that I have made the W-2 Corrections.....I guess I will not owe more money on the Form 940 but how will it be considered for the GA state withholding G-7?

Stephanie B. :

You shouldn't owe more money on anything because you should change the federal and GA withholdings to what they were before you made the change. Basically, you are filing corrected forms to show the increase in taxable income. You should owe no more money.

Stephanie B. :

I meant 1/1/12 if you are editing a payroll item that you used in 2012.

Stephanie B. :

For example, if you had a health insurance payroll account that was not treated as an S Corp insurance payroll item account, you could edit it to be effective 1/1/12.

Customer:

OK i get it now....well i'll go start the process....thank you.

Stephanie B. :

However, if you were not entering these transactions in the payroll center, you can just make an entry in the last paycheck of the year to show the insurance for the year and only have to amend the 4th quarter 941, 940 and W-2/W-3.

Stephanie B. :

You are very welcome.

Please let me know if you need further assistance with this. I will be glad to help.

Stephanie

Customer:

Can I come back and ask you any more questions later if something comes up?

Stephanie B. :

Absolutely.

Customer:

Ok thanks again.....

Stephanie B. and other Tax Specialists are ready to help you