New single member LLC formed this month.
If I decide come December that I want to be taxed as an S-corp as opposed to a sole-proprietor, do I then have to go back and submit quarterly payroll reports for the whole year if I backdate my S-election to February of this year when the LLC was established?
No. You would just run the report for the 4th quarter and show the full amount of W-2 salary in that quarter. In the subsequent years, it’s recommended that you run the reports quarterly.
Also, you will have to make tax deposits with your quarterly reports to pay the FICA tax and any income tax withholdings related to the wages.
I highly recommend using a qualified accountant or payroll service to process the payrolls. It shouldn’t cost more than $100-200 per quarter for a basic S-Corp payroll.