What is FICA tax explain briefly? Troy decided to cut his salary in half. Do you think
Question:
What is FICA tax explain briefly?
Troy decided to cut his salary in half. Do you think Troy's decision is ethical?
Troy is the sole shareholder and CEO of BQT. BQT is a very profitable S Corporation. Until recently Troy's salary was in line with the salaries of comparable CEO's. However, Troy recently learned that he could reduce his tax burden if he were to reduce his salary. In particular, by lowering his salary, Troy would receive less employee compensation that is subject to FICA tax and is not eligible for the qualified business deduction, and he would be allocated more business income that is not subject to FICA tax and qualifies for the qualified business income deduction. After considering the potential benefits,
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett