[newbizowner]

I'm filling out line 26 (Wages) of Schedule C and am unsure of what to put down. My journal entry for the wages I pay my employees looks like this: debit Salary Expense 100,000 and credit Federal Income Tax Payable 15,000, State Income Tax Payable 5,000, FICA Tax Payable 7,650, and Cash 72,350. Do I put down the full 100,000 on this line, or just the cash that I paid out?

[morgaine300]

The full amount goes on that line. Remember that to your company, the salaries is the expense, not the deducted taxes. The deducted taxes are expenses of the employees, even though the government makes you responsible for paying them. All the credits are simply where all that money is going to and has nothing to do with the expense. The expense is 100,000.