AboutShirley McAllister, CPP, PHR Expertise I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension.
I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures.
Please do not ask me homework questions I do not have time to answer them.
Experience 25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.
Organizations SHRM, APA, I.O.M.A.
Publications I.O.M.A. and BNA
Education/Credentials P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration.
Boise State University Human Resource Certification
Awards and Honors APA Hotline Citation of Merit for last 8 years.
Question QUESTION: Business has been pretty slow and we haven't been able to draw pay, how do I do payroll so taxes are paid but checks aren't cut until we have the money to draw pay? We use quick books and it doesn't give me any direction on how
to do this.
ANSWER: Are you a sole proprietor or the member of a partnership? This is difficult to answer without knowing what type of business you are in.
If you are a company with employees it is illegal not to pay them.
If you are a sole proprietor or member of a partnership and take draws instead of wages than you pay the taxes at the end of the year from a 1099 form.
You never pay taxes on payroll which you have not paid. Taxes are not due until the money is received by the employee.
When you pay payroll taxes that amount goes on the W-2 for the employee. If you pay taxes and no wages than the employee taxes are paid on wages that do not exist. This is not legal to do. Your W-2 forms and your 941 forms must match the amount of wages paid which must balance with the taxes withheld. On the 941 the dates the amounts are due must be in sync with when the amounts are paid.
It could be done, but you do not want to do it.
Explain more about your company and maybe I can help further.
Shirley
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QUESTION: The company is an LLC. The 2 owners are managing members,which they are sent up as employees, I'm the only other employee and I've agreed to wait on pay until business get better, but I would like to continue paying into FUTA & SUTA so in the event we don't get on our feet and I have to be laided off I can collect my unemployeement until I fine another job.
Sorry I wasn't clear on type of tax.
Darlene
Answer Again the Futa and Suta tax have to match the wages for the quarter. The state Suta directly must match the 941 and the W-2.
The Suta and Futa taxes are all paid in. If you do not pay in Suta or Futa that does not mean you cannot draw unemployment. What it means is when you go to draw your employers may be in trouble for not paying you salary and for not paying the taxes on the salary that should have been paid. It is okay for them not to be paid as they are the owners and can defer their salary, and be paid later in the year. They should still be paying your salary. Even if you agree to no salary it is not legal to not pay you and although you have agreed to wait they are legally obligated to pay your salary.
They can cut your hours, cut your salary, pay you only once a month, but they cannot let you work and not pay you.
You could pay the taxes, but when there is no income showing up on the Suta report or the Futa report they will come back and penalize the company and the penalties will be more than your salary.
