Hi TurboTax Experts,
I'm an independent consultant and trying to determine what my 2022 payroll vs distribution should be, including any extra Fed/State withholdings. My firm is a single member LLC with S-Corp filing status. Let's assume my monthly income is $12,500 or $150,000 year.
- I'm planning a 35% salary ($52K), 65% distribution ($97,500) split. Is this acceptable?
- Included in my 35% salary, I have 24% for Fed Withholding, 4.95% for state withholding, 6.2% for SS and 1.45% for MC. Is this correct?
- In my 65% distribution, do I need do extra withholdings for self-employment tax of 15.3% or is this tax free? I'm confused about this and need your guidance. Will I be paying taxes on this earnings at year-end?
- Not included, which I need to budget for is the employer payroll tax 6.2% SS and 1.56% MC. Is that correct?
Thanks for your guidance!! 🙏
Tom
@Anonymous_ @Critter-3 @VolvoGirl @Carl
