Adam Fleeman, a skilled carpenter, started a home improvement business with Tom Collins, a master plumber. Adam and Tom are concerned about the payroll taxes they will have to pay. Assume they form an S corporation and each earns a salary of $90,000 from the corporation; in addition, they expect their share of business profits to be $76,750 each. How much Social Security tax and Medicare tax (or self-employment tax) will Adam, Tom, and their corporation have to pay on their salary and profits?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Adam Fleeman, a skilled carpenter, started a home improvement business with Tom Collins, a master plumber. Adam and Tom are concerned about ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Jenna Newbury began a music business in July 2018. Newbury prepares monthly financial statements and uses the accrual basis of accounting.
Answers (1)
How has marketing changed from the four Ps approach to the more current value-based perspective?
Answers (1)
U. S. cola companies entered the global market because of: a. an increase in the return on investment from their U. S. bottling plants. b. lower labor costs in the emerging markets. c. limited growth opportunities in their domestic market. d.
Answers (1)
Sumner sold equipment that it uses in its business for $30,800. Sumner bought the equipment a few years ago for $79,600 and has claimed $39,800 of depreciation expense.
Answers (1)
Molly writes a letter that starts with the sentence, "We are proud to announce that all employees will be receiving bonuses this year.
Answers (1)
New Questions in Business
An economy begins in long-run equilibrium, and then a change in government regulations allows banks to start paying interest on check - ing accounts.
Answers (1)
What effect does the availability of many substitutes have on the elasticity of demand for a good?
Answers (1)
What strategies do companies use for their financial benefit
Answers (1)
1. On March 1, a business paid $3,600 for a twelve month liability insurance policy. On April 1 the same business entered into a two-year rental contract for equipment at a total cost of $18,000.
Answers (1)
Hubert is a veteran of the First Gulf War. What could be a reason for him to seek a VA loan?
Answers (1)