I did a retroactive election in 2025 for s-corp status for 2024. Got it, but I did not do payroll in 2024. I know this was my great big error. I'm all set up for 2025 payroll and beyond. Moving on.
The CPA told me not to be too worried about the W2's, given that my income is so low. Reasonable salary is $45k with $65 net income. And as a year 1, he thought it would be extremely unlikely.
I am having a hard time not worrying about them asking for those forms, given the potential late fees. Does anyone have related experience as to the likelihood they come after me for not have W2's?
(Note: I know I was a dumb dumb, and maybe got bad advice. I know some have strong opinions on whether or not the S-Corp was necessary. All set there!)
Posted by Grouchy-Ad3776
4 Comments
Listen to your CPA.
You will be fine.
Do you know how many business owners ive had to fight to get on payroll for their S-Corp election yet year after year they dont? Too many.
Given the amounts in question, they won’t bother you ever…lol
Just make a best effort to do it right going forward. If they ever ask, they ask, and you pay whatever they say to pay. Chances are they won’t.
TLDR: Listen to your CPA. That’s why you pay them.