Just to add another perspective - when I set up my S-Corp payroll in Gusto last year, I selected "Owner" AND "Officer" like others suggested, but I also needed to set up my state unemployment insurance account first. Gusto needed that SUI account number to complete the setup properly. Each state has different requirements, so double check what your state needs!

Hey Fatima! I went through this exact same situation about 8 months ago when I converted my single-member LLC to S-Corp status. The classification part in Gusto definitely threw me for a loop initially too! You'll want to select both "Owner" and "Officer" as your employee type in Gusto. Since you're the sole owner of your S-Corporation, you're technically considered a corporate officer (usually President/CEO) as well as the owner. This dual classification is what the IRS expects for S-Corp owner-employees. One tip that really helped me: before you finalize everything in Gusto, make sure you have your EIN updated with the IRS to reflect your S-Corp election. Sometimes there's a lag between when you file the election and when it shows up in their system, which can cause hiccups with payroll setup. Also, don't stress too much about getting the "reasonable salary" perfect right away. You can always adjust it as you learn more about your business patterns. I started conservative and then increased it after a few quarters once I had a better handle on cash flow. Good luck with the setup!

Just wanted to add one more thing that might be helpful - make sure you keep detailed records of the exchange rate you use when you transfer the money. The IRS requires you to report foreign currency amounts in USD, and you'll need to use either the daily exchange rate on the transfer date or the average annual exchange rate for the year. I'd recommend taking a screenshot of the exchange rate from a reliable source like xe.com or the Federal Reserve's rates on the day you make the transfer. This documentation could be important if you ever need to show how you calculated the USD equivalent for your tax filings or FBAR reporting. Also, since you mentioned this was salary income from Greece, double-check whether your Greek employer issued you any tax documents that show the taxes withheld. Having those documents will make it much easier to claim foreign tax credits if needed when you file your US return.

One additional consideration I haven't seen mentioned yet - make sure to notify your US bank ahead of time about the incoming international transfer, especially for an amount like $45,500. Many banks will temporarily freeze accounts or delay processing when they receive unexpected large international transfers as part of their anti-money laundering protocols. I'd recommend calling your bank a few days before you initiate the transfer from Greece and letting them know the approximate amount and date. Have your Greek bank information ready to provide if they ask. This simple step can prevent your funds from being held up for days or weeks while the bank investigates. Also, consider whether you want the money to go into a checking account initially or if you'd prefer it in a savings account. Some banks have daily withdrawal limits on checking accounts that might be inconvenient if you need quick access to larger portions of the funds right after transfer.

This is a great question that trips up a lot of people working on corporate returns! The key insight is that deferred tax liabilities (including the state portion) are purely financial accounting entries - they never appear as deductible expenses on your actual tax returns. When you calculate that deferred tax liability using your 24.5% effective rate, you're creating a balance sheet entry that tracks future tax obligations due to timing differences. But the IRS doesn't recognize "deferred tax expense" as a legitimate deduction because it's not an actual cash payment or legal obligation in the current year. For your specific situation with equipment depreciation differences, here's what's actually happening tax-wise: You're taking higher depreciation deductions now on your federal return (reducing current taxes), and the state portion of future taxes will be deductible on federal returns when those taxes are actually paid in future years - but only as they're paid, not as deferred amounts now. The M-3 reconciliation you mentioned is the right track - you'll report the temporary difference between book and tax depreciation there, but the deferred tax liability calculation itself stays in the financial statement world and doesn't flow through to your tax return at all.

This thread has been incredibly helpful! As someone who's relatively new to corporate tax work, I was making the same mistake of trying to treat deferred tax liabilities as actual deductible expenses. What really clicked for me reading through these responses is the distinction between financial reporting (GAAP) and tax reporting. The deferred tax calculation with your 24.5% rate is purely for your financial statements - it's telling you what your future tax obligation will be when those timing differences reverse. But from a tax perspective, you're just taking the depreciation deduction that's allowed under the tax code right now. The fact that it's different from book depreciation creates the deferred tax liability on your balance sheet, but that liability itself isn't a tax-deductible item. I had a similar case last month where I almost made this error. Thankfully my supervisor caught it during review, but now I understand the mechanics much better. The key is remembering that deferred taxes are an accounting concept, not a tax concept - they don't cross over into your actual tax calculations.

Just want to add that if you're still within the first quarter of withholding, you might be able to avoid penalties even with the delay. The IRS has safe harbor provisions for first-time withholding situations, especially for small nonprofits. When you do get your EFTPS set up and make the deposit, include a brief explanation letter about this being your organization's first gambling withholding situation and the administrative delays you encountered. Also, double-check that your nonprofit's EIN is properly linked to all the forms. I've seen cases where the W2G was filed under the organization's EIN but the Form 945 was accidentally filed under someone's personal SSN, which created a nightmare to untangle. Make sure everything matches your nonprofit's tax ID number. Good luck with getting this sorted out! The fact that you withheld properly and are trying to do the right thing will work in your favor if the IRS has any questions.

Hey Lim! I went through almost the exact same situation last year with our church's silent auction. A few key things that saved us: First, definitely get that EFTPS registration started ASAP - the 2-3 week wait is real. While you're waiting, you can actually call the IRS business line at 1-800-829-4933 and explain your situation. They might allow you to make the deposit via phone using a debit from your bank account, especially since this is your first time dealing with gambling withholdings. Second, yes you absolutely need to correct that 1099-MISC to a W2G. The IRS computers will eventually flag the mismatch between the form type and the withholding you're trying to deposit. Issue a corrected W2G showing the $6,800 winnings and your 24% withholding, then send a voided/corrected 1099-MISC to both the winner and the IRS. For Form 945, you'll file that by January 31st of next year, but you need to deposit the withheld funds much sooner. Since you withheld about $1,632 (24% of $6,800), you're under the $2,500 threshold, so technically you could wait until you file the 945. BUT - I'd strongly recommend depositing within the next week to show good faith effort. Don't panic - the IRS is generally reasonable with small nonprofits who are clearly trying to comply!

Theres another angle to consider - if ur trading in both taxable and IRA accounts and do these transactions across accounts, the wash sale rules still apply but ur broker might not track them correctly. Made this mistake last yr and got hit with an unexpected tax bill 😩

Great question about cross-account wash sales! You're absolutely right that brokers often miss these. The IRS considers SPY and VOO to be substantially different securities even though they track similar indexes. SPY tracks the S&P 500 while VOO is Vanguard's S&P 500 ETF - they're different enough that selling SPY options at a loss and buying VOO shares wouldn't trigger the wash sale rule. However, if you sold SPY options and bought SPY shares (or other SPY options) across accounts, that would definitely be a wash sale that you'd need to track manually since your broker won't catch it.