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

Implementing a global statutory reporting maturity model

Assess your organization's capabilities and progress toward an ideal state of global statutory reporting. Sponsored by Workiva.

100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.