For the self$-$employment tax calculations

Social security tax rate $12\mathrm{.}4\%$ limited to tax base of $ $160,200.$

Medicare tax rate $2\mathrm{.}9\%$ no limitation

Net earning from self$-$employment is the product of multiplying tax base by $92\mathrm{.}35$ percent.

Calculate the self$-$employment tax in the two following scenarios:

Gold Corp is an S Corporation. Ms$.$ Black is a shareholder and employee. She receives a salary of $$80,000$ and her share of S Corporation operating income is $$20,000.$ Additionally, she receives a distribution from the S Corporation of $$10,000.$

Gold LLC is taxed as a partnership. Ms$.$ Black is a member and employee. She receives a guaranteed payment of $$80,000$ and her share of partnership operating income is $ $20,000.$

Additionally, she receives a distribution from the$$LLC$$of$$$$10,000.$

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To calculate the selfemployment tax in each scenario we need to determine the net earnings from self... View the full answer