Hey all, absolute novice small business owner here. Here’s the gist of it, I am speaking with a CPA to sort this out but also wanted to hear from the community:

  • Started my company as S-Corp beginning of the year.
  • Didn’t know what my profits/revenue would look like so I didn’t officially start payroll until June.
  • However as I’m paying the expenses it looks like I could’ve done payroll starting in the beginning of the year.

Would i be able to do a “catch up” payroll to make sure I hit the S-Corp “reasonable compensation” requirements?

  • JimboDogwater@alien.topB
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    1 year ago

    Yes, of course. As long as the W-2 income vs distribution income isn’t out of whack at the end of the year, you’re good.