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

States look to unclaimed property for revenue

This free report outlines the escheat process, common types of AUP, how different states are handling it and how companies can plan for potential audits and liabilities.

PODCAST

Using drones to enhance audits

Hermann Sidhu, CPA, global assurance digital leader at EY, walks us through EY’s exciting new project to use drones to help audit large warehouses and outdoor inventories.