Have a Tax Question? Ask a Tax Expert
Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
Could you give me some background? You mention "for the first three months of this" - what are you referring to?
First three months of this year....
You did not take a salary as president during the first three months, but then the corporation made up the payment?
NO, I have not been paid for this deferred salary
Will you be in the future?
I hope, but unknown timing.
You should accrue it on your books as a deferred salary, yes
debit expense credit deferred salaries
And there's no tax event for you unless the salaries are actually paid.
so record as a salary expense but credit deferred salary asset
It's deferred salaries - liability
will this me a salary expense for this year, or only when paid
You incur the expense when you accrue for it. YOu will not owe payroll taxes until paid. You as a person will not be taxed on it until you are actually paid.
Is there anything else you need assistance with?
nat at this time thanks
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