USA Loans to shareholders adjusted against Payroll

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I have a client (corporation) that loaned money to an employee shareholder because they were not ready to pay salaries (new company). Now the client wants to pay salary. Can you report some or all of the loan amount as salary and file payroll returns? I am not aware of any payroll tax implications. Does anyone have experience in that.

I would appreciate the feedback
 
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You can technically report the loan amount as salary and have the client pay the FICA on it, but why do that? Just have them transfer money back into the corporation and classify it as repayment of the loan. Better yet, have the client pay for stuff on behalf of the corporation, and debit the expenses in, while crediting the loan (via journal entry).
 

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