AboutArthur Naman Expertise General accounting and bookkeeping questions. How to do monthly bookkeeping, how to prepare financial reports. How to reconcile accounts.
I cannot answer questions pertaining to pension or retirement planning.
This is not a forum to have homework answered. Please do your own homework.
Experience 30 years' experience doing tax and accounting work
Education/Credentials MPA from Univ. of Texas at Austin, MBA Golden Gate Univ, San Francisco CA
Question I have set up a single member disregarded LLC for consulting. Can I avoid paying quarterly estimated tax by establishing a payroll and paying myself a monthly paycheck. I assume all proper deductions will be taken from the paycheck. Should I receive payments totaling more than the sum of my payroll checks, can I issue a paycheck at year end pay myself the remainder.
Answer No, quarterly payroll taxes are due regardless of the pay period: weekly, biweekly, semimonthly or monthly, or other periodic payment method for that matter.
The payroll taxes owed are simply based on when you write out a paycheck.
Having said, normally a single member LLC is setup as a sole proprietorship. Payments from a sole proprietorship to its owner are not considered payroll; payments from a corporation are payroll on the other hand.
So, if you have a sole proprietorship I do not believe payments to you as the owner would be considered subject to payroll taxes.
