We are switching from an LLC C-Corp to S-Corp, and I understand I need to set up Owner's Pay and Owner's Health Insurance accounts. I was able to find how to accomplish this so that they flow to the W2 correctly. But, I need to know how to make this change retroactive. We should have made this change before the first payroll of the year to align with the new tax treatment, but we did not, and have already had 6 payrolls run.
Hello there, @belynda.
Since you have already processed payroll for this year, you are unable to record retroactive S-Corp payroll changes in QuickBooks Online Payroll (QBOP). Let me share some information below.
Transitioning your business from an LLC C-Corp to an S-Corp necessitates precise modifications to payroll records to comply with IRS standards. Essential steps include comprehending S-Corp requirements, recalculating payroll figures, updating the payroll system, and implementing required changes.
With this, I recommend contacting our QuickBooks Payroll Live Support team. They have the necessary tools to help you adjust your payroll data before the first payroll of the year. Here's how:
In addition, to get a quick overview of your payroll totals, including employee taxes and contributions, you can generate a Payroll Summary report in QuickBooks. This report can be customized for any specific date range or select group of employees: Create a payroll summary report in QuickBooks.
If you have any questions regarding payroll management under the new tax regulations or any QuickBooks Payroll issues, feel free to reply below. The Community is always here to help. Have a great day and take care!
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