Re: Are Matching SS & Medicare Contributions Deductible?


"Paul Thomas" <paulthomascpa@xxxxxxxxxxxxx> wrote in message
news:s2eXh.17478$qB4.9147@xxxxxxxxxxxxxxxxxxxxxxxxx

"DB" <x@xxxxx> wrote
When wages are paid to employees, a corporation has to contribute
additional amounts by matching their employees SS and Medicare
contributions. Are those matched amounts an income tax deduction?


From the business revenues, yes. Either on the corporate, partnership or
sole-proprietors returns.



If so, how and where on the corp return (1120) is the deduction taken?


Either as part of the "Taxes and Licenses" expense item or maybe listed
separately under "Other Expenses".




Is it added to the "wages and salaries" category?



I've seen it done this way, but because of the matching of the W-2's to
the tax return, I like the salary and wages number from the return to
match gross pay from the W-2. If there are salary reductions (like
employee pension contributions) they fall to an overflow schedule
explaining it all. Other items like taxes, workers comp insurance, payroll
service fees, etc get reported elsewhere separately.




--
Paul A. Thomas, CPA
Athens, Georgia



Excellent! Thanks!!

DB


.

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