DID YA HEAR? 80% of the over 250K crowd is "Small Business"!

[Care4all]

if he takes his profit from the company and claims it on his individual income tax....does he also have to pay Social Security and medicare taxes on it? Or only if he pays himself within the company a salary is SS taxes paid?

how large or small, of a company, can an S-corp be, do you know?

care

Yes, they have to pay SS and Medicare taxes. There is no limit to size of an S-corp that I know of.

An S corp can have no more than 75 shareholders and there is only one class of stock unlike C corps which can have different classes of stocks

So, let's say an s-corp has 50 shareholders who all hold other jobs with other employers, paying them all at around 50K a year, then the Scorp they are shareholders in gives them a return/profit of 10k each, after all said and done...

Do these shareholders have to pay for their own social security taxes, both the business portion and the individual portion, on the 10k in profit they drew off of their s-corp?

I don't believe they would have to pay such on the 10k they each recieved, but some are saying yes they would have to pay all of FICA on that as well?

What is correct, do you know for certain?

Care

 

[Skull Pilot]

Yes, they have to pay SS and Medicare taxes. There is no limit to size of an S-corp that I know of.

An S corp can have no more than 75 shareholders and there is only one class of stock unlike C corps which can have different classes of stocks

So, let's say an s-corp has 50 shareholders who all hold other jobs with other employers, paying them all at around 50K a year, then the Scorp they are shareholders in gives them a return/profit of 10k each, after all said and done...

Do these shareholders have to pay for their own social security taxes, both the business portion and the individual portion, on the 10k in profit they drew off of their s-corp?

I don't believe they would have to pay such on the 10k they each recieved, but some are saying yes they would have to pay all of FICA on that as well?

What is correct, do you know for certain?

Care

there are no payroll taxes and such on stock dividend payment.

 

[Xenophon]

Clinton nearly wiped them out in the 1990s.

BO will finish the job Bubba started with them.

This is intellectually dishonest also. I'm not for this tax increase. But let's be honest; the wealthy became very wealthy during the 90's. The slightly higher marginal tax rate did not hurt them or the economy at all.

Sorry, but it isn't, I watched it happen as the companies around us folded up one after the other.

There is no magic fountain of new wealth to tap into, everytime you tax somewhere it does damage to someone who will try to pass that damage along.

 

[elvis]

While many in this country were discouraged with the way our country has been run over the last 8 years. You just voted for a man who stated that many--or should I say "almost none" of the small businesse's in this country make over 250K".

Well, it turns out that while Americans are ready to form a lynch mob & hang the master minds of deceit, the Hedge Funds managers & the corrupt Wall streeters.

This new policy to hike taxes to astronomical levels- on anyone that earns over 250K. It appears that Obama forgot to mention that 80% of the over 250K people are honest hard-working small business owners. You know the "risk takers" of this country that also hire employees, make payroll, benefits, etc. In other words--"Small business owners, whom have nothing to do with Wall Street or Hedge fund managers."

So we are to tax to all time new levels these people--which represent only 5% of this nation, while expecting them to give the rest of us (95% of us) a tax break, of which 40% pay no taxes what-so-ever. Add to this--these same people, the 5% are also expected to pay for all our medical insurance premiums. This all according to Barack Obama's plan. This is what I call FUZZY MATH.

The Obama adminstration has in effect declared war on small business in this country. Still the largest employer in this country.

And to those of you who bought into this garbage & voted for it--you now OWN IT.

This theory was widely debunked last year during the election. So much so that McCain stopped using it. I'm not sure why Republicans have picked it back up.

FACT CHECK: GOP adrift on small business claim

"That's not likely, according to one in-depth analysis, which found that more than 95 percent of small business owners would be off the hook."

Why is that, oreo? Because Repugnicans are using income to make the claim that 80% of small businesses would be taxed, when small businesses aren't taxed on income - they're taxed on profit. And no small business I know of makes $250,000 a year in profit and if you do, you need to fire your accountant.

fact check also said Obama blocked the born alive bill and that he lied in the debate about the law already being on the books.

 

[Yukon]

President Obama will make the wealthy pay their share of Income Tax. Thank God someone with brains is running your country for a change. Eight years of lies, deceit, theft, war, corruption, and hate will be replaced with PEACE, LOVE, and PROSPERITY.

God Bless Obama !

 

[Yukon]

Elvis,

I am no longr officially affiliated with the Church. I left the Priesthood several years ago because of the attitude taken by the Church in Canada over homosexual Priests and Brothers. The problem existed in eastern Canada long before it was known in the USA. Open your eyes my son, there is a world outside of America, really there is....................

 

[elvis]

Elvis,

I am no longr officially affiliated with the Church. I left the Priesthood several years ago because of the attitude taken by the Church in Canada over homosexual Priests and Brothers. The problem existed in eastern Canada long before it was known in the USA. Open your eyes my son, there is a world outside of America, really there is....................

so you support the priests in their raping of altar boys?

 

[Yukon]

Elvis.......take a Prozac and go back to bed my son.

 

[elvis]

Elvis.......take a Prozac and go back to bed my son.

I'm not your son, fuck stain.

 

[DiveCon]

President Obama will make the wealthy pay their share of Income Tax. Thank God someone with brains is running your country for a change. Eight years of lies, deceit, theft, war, corruption, and hate will be replaced with PEACE, LOVE, and PROSPERITY.

God Bless Obama !

a moron like you saying someone has or doesnt have brains is ironic

 

[WillowTree]

Middle class will soon cease to exist.

don't be so pessimisstic! Yet!

 

[Yukon]

Willow,

The middle- class will expand because those high earners will be atxed to the extent that they will be middle-class.

 

[Meister]

Willow,

The middle- class will expand because those high earners will be atxed to the extent that they will be middle-class.

Yukon, why don't you just call it redistribution of wealth?

 

[Care4all]

bulloney yukon!

but kudos for trying to baffle them with your bs!!!

 

[elvis]

Willow,

The middle- class will expand because those high earners will be atxed to the extent that they will be middle-class.

Yukon, why don't you just call it redistribution of wealth?

He's a closet communist.

 

[WillowTree]

Willow,

The middle- class will expand because those high earners will be atxed to the extent that they will be middle-class.

Yukon, why don't you just call it redistribution of wealth?

axed him why librals cannot spell?

 

[Meister]

Willow,

The middle- class will expand because those high earners will be atxed to the extent that they will be middle-class.

Yukon, why don't you just call it redistribution of wealth?

axed him why librals cannot spell?

Willow, I think we just need to get a Canadian dictionary.

 

[DiveCon]

Willow,

The middle- class will expand because those high earners will be atxed to the extent that they will be middle-class.

so, ya gotta pull those above down, you cant lift those below up?

 

[DiveCon]

bulloney yukon!

but kudos for trying to baffle them with your bs!!!

actually, he was speaking the truth
that is exactly what the plan is
punish those doing well, so those not doing well will somehow feel better about themselves

 

[Ravi]

But as an owner, you can choose to take a dividend payment above and beyond your salary that is taxed differently than income and is not subject to all those payroll taxes. Dividend payments are reported on a 1099 not a w-2.z

Another option for some businesses, if it applies, is that your business can pay you rent. And rental income is taxed differently than earned income. You can also establish a separate management company to collect that rent and take care of the property and have an entirely separate income from that which allows you to double up on tax deferred retirement accounts and gives you another source of dividend income rather than income reported on a w2

So potentially, you could draw a 50K salary reported on a w2, dividends of 50K and rental income of 50K and pay less taxes than you would on 150k reported on a w2.

hmmmm....dividend income isn't all that different...you still must pay income taxes on it. The only thing different, that I can see, is you can deduct the 50% of FICA taxes. Which you wouldn't be obligated to pay anyway, if your business was paying it.

I'm also not seeing how rental income is taxed differently.