Corporate Law paying employees outside of corp

[woody]

I am a shareholder in an S-corp. I employed some of the workers at the S-corp to help me with a maintenance project for our facility (painting). I was paid by the corp and then paid the employees out of pocket. This was voluntary work and completely separate from their duties. Is this legal? Did I have to pay through payroll?

 

[army judge]

I am a shareholder in an S-corp. I employed some of the workers at the S-corp to help me with a maintenance project for our facility (painting). I was paid by the corp and then paid the employees out of pocket. This was voluntary work and completely separate from their duties. Is this legal? Did I have to pay through payroll?

If you paid the workers out of your pocket, probably not.
If you paid them using company funds, you may have made big trouble for yourself.
I suggest you discuss these kinds of things ONLY with your CPA or your tax attorney.
The tax confiscators are everywhere.