Specify Social Security Withholding?

Technical topics regarding tax preparation.
#1
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It's that time of the year where I'm running S Corp projections for a few clients that file Schedule C.

This is probably a dumb question...

Does anyone know if you can instruct payroll processors such as Gusto and ADP that the employee share of social security NOT be withheld and remitted? Googling doesn't turn up much...

Several clients are tapped out on social security withholding via other W-2 employment. Is the only path forward to withhold SS as well on the S Corp salary and then get the refund of excess SS withholding through the 1040?
 

#2
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Yes, that is the only way.

If you have an S corp client with withholding on other W-2 jobs... that's potentially a sign that they shouldn't be an S corp.
 

#3
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Thanks for your reply missingdonut.

And yes, it does work against an S Corp if the taxpayer is already tapped out on SS. One particular client will most likely have low reasonable comp in relation to net taxable income from the business -- somewhere around 30%, which pushes back the other way.
 

#4
mscash  
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If a person has more than one job covered by Social Security withholding is due from both jobs. It will be credited as withheld income tax when the return is filed.
 

#5
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mscash wrote:If a person has more than one job covered by Social Security withholding is due from both jobs. It will be credited as withheld income tax when the return is filed.


This is true, but the employer taxes paid by the s-corp are gone forever.
~Captcook
 


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