K1 Guaranteed pmt conflict
how do I fix a partners guaranteed pmt that had payroll deductions? Override SE amount on K1?
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aUVpIUo58r4yUOacwZ5xHE
01/10/12 7:29am PST
Viewed by asker 01/18/12 2:57pm PST
Viewed by asker 01/18/12 2:57pm PST
1 Reply
01/10/12 9:45am PST
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The solution
No, don't override. Guaranteed payments should be reported on K-1 and generally these are subject to SE tax. That's correct.
The payroll deductions are what are incorrect as these assume the partner is an employee. Partners are not employees. So it's the payroll deductions that need correcting.
Here's a link: http://www.irs.gov/businesses/small/article/0,,id=98214,00.html
