Margaret CPA in OH Posted January 20, 2011 Report Share Posted January 20, 2011 Contractor (tough year) took no wages as employee (sole sh of s-corp) because there was no money. Dad helped him out with living expenses until he sold his house. He used that money for cash flow for materials on the few jobs he had but has significant loss for the year. I reported no payroll on all 941's. Is it correct to assume that a zero W-2 is not to be filed? Never happened to me before. Quote Link to comment Share on other sites More sharing options...
Elrod Posted January 20, 2011 Report Share Posted January 20, 2011 Margaret, No W/2 needs to be filed. It's not required if there is no payroll. Happy Taxing :spaz: Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 26, 2011 Report Share Posted January 26, 2011 No need for a zero W-2, but I would file a zero 940 and 941, if there was no payroll at all to anyone last year. Just to CYA and the client's A as well. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted January 27, 2011 Author Report Share Posted January 27, 2011 Thanks, KC. I did file 0 941's but not the 940. I will do that! Things are already looking much better for him this year. I hope so, anyway. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 28, 2011 Report Share Posted January 28, 2011 Yes, because the IRS uses computers for so many of their notices and penalty letters, filing a zero 940, while meaningless to a human being, creates an entry in the computer that avoids the 'automatic letter' that not filing will usually generate. Quote Link to comment Share on other sites More sharing options...
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