Deferred Salary Entry and Tax Impact

USA Discussion in 'Businesses / Corporations' started by DEMCPA, Jun 13, 2017.

  1. DEMCPA

    DEMCPA

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    Hello, this is my first post! Please bear with me.:):( I have a multi-member LLC that is taxes, as a Partnership. I know that my members can't get salaries right? As a partnership, they share in the earnings and losses ... SOOO, a Managing Member that spends 45+ hours a week on the LLC (vs members who are financing only) gets his reward from his majority ownership right? If I have someone working for the company without getting paid. Can I DR Salaries Expense and CR Deferred Salaries Payable Account? OR, can I setup a LOAN that is being made to the company since the company can't pay? Finally, can I write this off on the LLC tax return (taxed, as a Partnership) even if no actual salary was paid to the employee? Will I have have 'tax issues' here since there isn't a corresponding 941 or state employment report that was filed or taxes paid since the salary wasn't paid ... can I just not write this off then???? If not, how can I account for someone working for the company - - receives no equity and the company plans on paying cash at a later date? Is my journal entry of SALARIES EXP (dr) and LT LIAB - DEFERRED SALARIES (cr) correct?
     
    DEMCPA, Jun 13, 2017
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