QSub Is Employer


The IRS issued final regulations under which qualified subchapter S subsidiaries (QSubs) and other disregarded entities—rather than the entities’ owners—are responsible for reporting and paying employment taxes. The rules represent a change from temporary provisions of Notice 99-6, under which either the entities or their owners could be regarded as the employer for purposes of reporting and paying employment taxes. The final regulations, issued as Treasury Decision 9356, also designate disregarded entities as responsible for some excise taxes and clarify that an owner of a disregarded entity treated as a sole proprietorship is subject to self-employment taxes. The employment tax provisions apply to wages paid on or after Jan. 1, 2009.

SPONSORED REPORT

Click-through nexus: Pushing the boundaries of sales tax compliance

Sales and use tax compliance has been complicated by nexus expansion. In this report, we provide an overview of this issue and include a handy state-by-state summary of click-through nexus or notification requirements.

QUIZ

News quiz: Making allowances for the kids and the economy

Recent news gives CPAs insight into Americans’ attitudes about children and money and gauges outlook on the economy. See how much you know about recent news and reports with this quiz.

CHECKLIST

Auditing risks in culture

Cultural flaws can seriously damage an organization. Here’s how internal auditors can reduce risks by embedding culture audits into existing audit programs.