Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

How should we report earnings for partnerships, sole proprietorships, limited liability corporations and the like when there is no salary and no W-2 form is issued?

April 26, 2017corporations Earnings liability limited partnerships proprietorships report salary sole W-2

0

Posted

How should we report earnings for partnerships, sole proprietorships, limited liability corporations and the like when there is no salary and no W-2 form is issued?

1 Answer

0

Posted

The auditor should include each person (i.e., owners, partners, members) on the schedule of salaries and wages. A footnote should be added to the schedule explaining why the amount was not traced to a W-2 form and describing what other type of supporting documentation the earnings were traced to.