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Accounting, Payroll & Pension Issues/Sole Proprietors on the payroll
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Question
Can a sole proprietor be on the payroll and have taxes withheld? If not what are the ramifications if it was done?
Basically the answer is no, as sole proprietors are not employees. The IRS does not provide for a means to do this.
You might set aside the payroll taxes so that when the sole proprietor makes the normal quarterly estimated tax payments, the funds will be available.
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Accounting, Payroll & Pension Issues
Answers by Expert:
Arthur 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
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