Social Security Tax

Use an S corporation to mitigate federal employment tax bills

Federal Employment Tax, FICA, Medicare Taxes, S Corporation, Self Employed, Self Employment Tax, Small Business, Social Security Tax / By Douglas Freeman

If you own an unincorporated small business, you probably don’t like the size of your self-employment (SE) tax bills. No wonder! For 2023, the SE tax is imposed at the painfully high rate of 15.3% on the first $160,200 of net SE income. This includes 12.4% for Social Security tax and 2.9% for Medicare tax. …

Use an S corporation to mitigate federal employment tax bills Read More »

Inflation Reduction Act provisions of interest to small businesses

(CARES ACT), Alternate Minimum Tax (AMT), Federal Tax Credit, Inflation, Inflation Reduction Act, Payroll Tax Credit, Research Tax Credit, Small Business, Social Security Tax, Tax Cuts and Job Acts (TCJA) / By Douglas Freeman

The Inflation Reduction Act (IRA), signed into law by President Biden on August 16, contains many provisions related to climate, energy and taxes. There has been a lot of media coverage about the law’s impact on large corporations. For example, the IRA contains a new 15% alternative minimum tax on large, profitable corporations. And the …

Inflation Reduction Act provisions of interest to small businesses Read More »