@nickam wrote:Social security taxes are caped and already maxed out through my W2 income. Hence, the LLC-B and resulting W2 from it DOES NOT have to pay social security.
Hence, the FICA taxes will only be 3.8%
That is incorrect. You will also pay 6.2% for the employer portion of Social Security.
In addition to the Medicare tax that you mentioned, the S-corporation will withhold 6.2% Social Security from the paychecks, plus it will pay 6.2% for the employer portion of Social Security.
When filing your tax return, you effectively will get the 6.2% back that was withheld (because you hit your Social Security maximum), but the corporation is still paying 6.2% for the employer part of Social Security.
Plus Federal Unemployment (and maybe State unemployment, worker's compensation or other state requirements, but those rules vary from state to state).
