@Michael16 wrote:
Self-employment tax: ($325,000*0.9235)*0.153=$45,921
No. Social Security maxes out at $147,000 (2022).
Self-employment tax: ($147,000*0.9235)*0.153 [Social Security and Medicare] + $178,000*.9235*.029 [Medicare only] = $25,537
And don't forgot that the corporation salary will have both employee FICA and employer FICA ( a total of $19,890 in your example, but as was mentioned that salary seems low if you don't have anybody working for you)
