Bill owns 100% of an S corporation. In 2015, the corporation paid Bill a salary of $100,000.

Question:

Bill owns 100% of an S corporation. In 2015, the corporation paid Bill a salary of $100,000. Bill's share of S corporation income for the year was $42,000.

Assuming this is Bill's only income for 2015, compute Bill's payroll and self-employment income taxes.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...