Are the wages/salaries/draws paid to partners or sole proprietors reportable for ES taxes?
This one is easy. No. Neither partners nor sole proprietors are covered for unemployment, and neither may elect coverage. Partners and sole proprietors are considered self-employed and are working for the profit, or the loss, of the business not for wages. Even though they may be drawing a salary during the year, this is actually a draw against the profits of the business.
