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R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 3374
Experience:  Over 20 Years experience
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need to write my first paycheck of the year: $12,000 from C-Corp

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need to write my first paycheck of the year: $12,000 from C-Corp I own 100%. What are the deductions I need to make? What do I need to send to California & Federal withholding authorities for FICA, Income Tax, Disability, Unemployment, FUTA +++??? What did I forget? Need the addresses for Uncle Sam & California to send checks. Assume $150k filing joint income for year

Randalltax : Thank you for contacting me about your Tax issue. I will work hard to help you understand the issue clearly.
Randalltax : your paycheck will need deductions for 6.2% Social Security, 1.45% for Medicare, federal income tax based on your W4 certificate, CA stat tax based on the W4 as well, plus CA SDI deduction. these are the minimum deductions.
Randalltax : you should probably consider hiring a payroll service to handle this if you are not familiar with all of the requirements for payroll, as this can become a sticky mess in a hurry. In addition to withholding taxes from a paycheck, you will need a least monthly tax deposits and quarterly payroll tax reporting to IRS and CA.
Customer: paychecks from the company are occasional, not monthly, so can't justify a payroll service. Over the years I've stumbled through this with web resources. My hope is that I can gain a depth of understanding from a pro here so I can develop a rhythm. MBA finance, CFO, just not a payroll expert. If you would be so kind as to provide excellent tools, I'll give you an "excellent service" rating.
Customer: Is a W-4 required?
Randalltax : You should have a W-4 on file. You need the information from the W-4 to correctly withhold federal and state tax.
Randalltax : Payroll should not be done on a "on a whim". Make your payroll at least monthly, even if the amounts are not the same check to check.
Randalltax : Doing it on a "whenever" basis, like many things, makes it hard to remember how and when to make deposits, send in payroll forms, etc.
Randalltax : Escuse my commentary, but your reluctance to pay a minimal fee or to engage continuously indicates that you are not really serious about running a business. It sounds more like a "hobby" to me. The way to grow your business and make it a real business is to pay others to do the things you are not expert at, while concentrating your energies on increasing sales or performing your expertise. A surgeon, for example, should not mess with payroll, but SHOULD pay someone to make sure he is paid regularly. His skill is surgery and he should do everything to be doing that skill as often as possible and not so something like payroll because it is a waste of his time and skill even though he COULD learn how to do it.
Customer: appreciate your advice. now please answer my specific questions specifially.
Customer: specifically
Randalltax : I have answered as specifically as I can in the first paragraph.
Randalltax : You cannot mail your payroll taxes to IRS for your regular deposits. It must be done electronically. Sending by mail incurs an additional 10% penalty for starters. Same goes with CA.
Randalltax : You cannot use a hammer and nails to build a house efficiently. Likewise, the IRS will not handle old-fashioned mailed-in payments for payroll taxes. Therefore, I cannot provide an address.
Randalltax : IRS Publication 15 has additional information, starting on Page 25 for how to deposit. The other "old-fashioned" method of making deposits in a bank or financial institution has also been completely phased out and is no longer available.
Randalltax :
Randalltax : Since I do not know your W-4 selections (Filing Status & Exemptions), I also cannot determine how much federal and state tax you need to withhold for a $12000 "once-in-awhile" paycheck.
Randalltax : So, as much as I would like to get more specific to earn your reward, there simply is not enough information in the question and not a way to accomplish what you are doing without incurring additional difficulties.
Customer: I appreciate your coaching, but not the answers. There are specific answers, and you could have asked about the W-4 data. My hope was specific direction, not philosophy. I'll look further for answers elsewhere.
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