Question
MOT as S corporation is 100% owned by Tyrone. MOT has two others employees Jack and Jill. How is the compensation for Tyrone, Jack and
MOT as S corporation is 100% owned by Tyrone. MOT has two others employees Jack and Jill. How is the compensation for Tyrone, Jack and Jill treated?
a. Jack and Jill receive Form W-2 for their wages. MOT will deduct their wages and its share of payroll taxes on Form 1120-S. Tyrone will receive Schedule K-1 (Form 1120-S) reporting his share of income and his wages
b. Jack, Jill and Tyrone will each receive Form W-2 reporting their wages. MOT will deduct he wages and its payroll taxes on Form 1120=S. Tyrone will receive Schedule K-1 (Form 1120-S) reporting his share of income
c. Jack, Jill, and Tyrone will each receive Form W-2 reporting their wages. MOT will deduct Jack and Jill's wages it's share of payroll taxes for Jack and Jill on Form 1120-S. Tyrone will receive Schedule K-1 (Form 1120-S) reporting his share of income
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