Allowable Payroll Tax Business Deduction S Corp

[pdiaztorres]

When following the TurboTax Business Instructions to calculate the allowable payroll tax business deduction for my S corp, it says to only account for the employer portion of the items below on an annual salary of $24,000.  Does the calc. below seem correct?  Since I itemized the $24K salary  figure, in the salary/wages portion of the deductions; can you please confirm I am not omitting any other allowable payroll tax business deduction?.  I tried paying an expert to answer this question; however the assistance for business is not available in the state of MD. This is a question a personal tax expert will not answer. I pay deluxe and business audit protection fees I hope someone can answer these questions 

Employer's portion of Social Security=744

Employer's portion of Medicare=174

FUTA=42

State (MD) FUTA = 25.50

[AliciaP1]

The employer portion of Social Security is 6.2% and Medicare is 1.45% which combined are FICA taxes and the employee pays 7.65% FICA and the employer matches it.  Federal unemployment tax (FUTA) is .6% of the first $7,000 of payroll.  I can't speak to the rate of your State unemployment (generally labeled SUI) because each state assigns each business a specific rate based on its own measurements.

So, your example of $24,000 salary would result in $1,488 Social Security, $348 Medicare, and $42 FUTA.  

You should have already had these amounts though, because your payroll tax returns and payments were due to be filed by 01/31/23.  You may want to look for a payroll service or business tax professional in your area to help you out.

[pdiaztorres]

@AliciaP1 thanks for your response! so, will the employer portion would be 50% of the amounts you provided? if so, my calculation was correct. Yes I did send these withholdings quarterly in 2022; the last quarter by 1/1/23

[PatriciaV]

The example given by AliciaP1 calculates only the employer portion. The employee pays the same amount for Social Security and Medicare but nothing for FUTA. The total withholding paid with Form 941 would include both the employer and employee portion. FUTA is paid separately.