Bill owns 100% of an S corporation. This year, the corporation paid Bill a salary...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Bill owns 100% of an S corporation. This year, the corporation paid Bill a salary of $100,000. Bill's share of S corporation income for the year was $42,000. Assuming this is Bill's only income for the year. Assume the Social Security rate is 6.2% and Medicare rate is 1.45%. If an amount is zero, enter "0". If required, round your answers to nearest dollar.
a. What amount that Bill received is subject to payroll taxes? $ ____
To self-employment taxes? $ ____
b. Compute Bill's payroll and self-employment income taxes.
Bill's payroll taxes: $ ____
Self-employment income taxes: $ ____
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.