mimi4416, In his first post you failed to notice that the payroll is in a S-corp and the S-corp is going to pay the 15.3% (form 941) to the government as employment taxes and not self-employment taxes. The employer portion is an expense on the 1120s and not on the 1040. The employee withheld portion shows up on his employee W2 the same as it would on any other employee of the S-corp.