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after reading thi info in the picture attached. please tell what you have learned here. regarding FICA taxes, sole propreitorship vs S corporation.

In the last assignment, the lesson was that a drawback of an S Corporation compared to a C corporation is that health insurance benefits are ultimately taxable to the owner/worker on the W- 2. Now we will compare two other scenarios: sole proprietorship versus S-Corporation. If you look at your paycheck, the biggest deduction may be FICA taxes. The employee pays up to 7.85 percent tax (no standard deductions), which is matched by the employer, for a total direct and indirect tax burden of 15.3 percent. To add insult to injury FICA taxes are not deductible for AGI purposes. This means that you pay personal income taxes on gross income including employee-paid FICA taxes (but not on employer-paid FICA taxes). FICA Taxes have four components (base amounts for 2020): Employer-paid Social Security (SS) 6.2 percent on up to $137,700 Employer-paid Medicarel.45% tax (no limit) Employee-paid Social Security (SS) 6.2 percent on up to $137,700 Employee-paid Medicarel.45% tax (no limit) There is also a special Medicare tax on wages paid in excess of $200,000 of 0.9%, but this is not matched by the employer. In the case of self-employed (sole proprietorship), they have to pay both the employer and employee portions! A small consolation is that the employer portion is deductible (not a credit) for income tax purposes. A major benefit of an S-Corporation over a sole-proprietorship is that the pass-through earnings are not subject to FICA taxes. The S-Corporation and employee/owner still pay FICA taxes on the wages paid to the employee. Please comment on the above in about 300 words. You may add your own sources, which I ask you to please cite, reference, and attach. If you are not sure what to do, then you may do the following. Explain what you have learned to a friend without looking at the top of the page, but you may use other sources, as long as you cite, reference, and attach them (please paraphrase). Ideally, you will teach me something new

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