I just met with a potential client who informed me that last year she did not take a salary at all. She only withdrew from her bank account. Is there a way for her to correct this before doing the return for last year? Can she pay what should have been deducted last year for employment taxes this year? Is there a way to pay what would have been due and report a w-2 for last year before the 3/31 due date?
What normally happens in the case that an owner does not pay themselves a salary at all?
She also informed me that an accountant informed her to pay herself a 1099misc for her income from the company. Isn't this wrong? She is not an independent contractor of her own company so how can this be correct? Please advise. Thanks and have a great day.