Employment tax compliance is not my wheelhouse, so I apologize for what may be a dumb question...
Brand new client that I picked up recently. He wholly owns an LLC taxed as an S Corp. The S Corp is cash basis. He is the only employee.
He provided me with a 2019 W-2 (from the S Corp to him) along with the related payroll tax returns that were prepared by another accountant. The salary and related withholding & employment taxes did not come out of his business checking account until 2020 and thus do not show up on his 2019 S Corp P&L.
I'm rather confused about what to do here... Obviously if the W-2 income is reported on his 1040 with the flow through income from the S Corp sans the related compensation deduction it's going to hit him particularly hard.
Do we amend the payroll returns and issue a corrected W-2?
Also, health insurance premiums were paid on his behalf by the S Corp during 2019. These were not reflected in Box 1 of the W-2 like they should be. So bare minimum I imagine I'll have to prepare a W-2C for that.