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where do payroll taxes go on schedule c ?

**Where Do Payroll Taxes Go on Schedule C?**

Understanding where payroll taxes fit on Schedule C is crucial for accurate tax reporting. Schedule C is used by sole proprietors and single-member LLCs to report business income and expenses. Payroll taxes, which include Social Security, Medicare, and unemployment taxes, are considered business expenses.

1. **Nature of Payroll Taxes**: Payroll taxes include both withholdings from employee wages and employer contributions. These are costs incurred by the business and are deductible.

2. **Reporting on Schedule C**: According to IRS and Intuit sources, payroll taxes are reported under “Taxes and Licenses” on Schedule C. This section is designated for business expenses related to taxes.

3. **Categorization**: It’s important to distinguish between different types of taxes. While self-employment taxes are reported on Schedule SE, employer-paid payroll taxes are expensed on Schedule C.

4. **Deductibility**: By categorizing payroll taxes as business expenses, they reduce the business’s taxable income, thereby lowering the owner’s overall tax liability.

In conclusion, payroll taxes paid by the employer are deductible on Schedule C under “Taxes and Licenses,” helping to minimize taxable income effectively.