Quote:
Originally Posted by MDelgado17 I understand this, but that is included in the Employer Liability portion of $197.10 already. So in addition to that, I am as well being deducted the $340.10 for a total of $537.20 being paid out by the company.
What I don't understand is why the $340.10 is being deducted from the company end as well when it is already being deducted from my gross pay on the employee side. Unless there's (obviously) something I'm simply missing here. |
I understand all these withholdings and state/fed requirements, what I don't understand is at first, it appears that the company will only be liable for the $197.10, however, after speaking with my payroll company when I realized the business was being deducted a total of $537.20, they informed me the company is not just for the $197.10, but AS WELL for the $340.10 on the employee withholdings.=====> An S corp, like any other business, must pay FICA taxes on behalf of its employees, you. The obligation for Social Security and Medicare taxes is divided equally between the employees and the employer, the S corp. In most cases, you pay 6.2 percent of youir wages in Social Security taxes and 1.45 percent in Medicare taxes, for a total of 7.65 percent. The employer, the S corp, then pays an equal amount , another 7.65 %, out of its own pocket. it's typically the employer's(the S corp ) responsibility to collect "both sides" of these taxes and send them to the government, it can only claim a deduction for the taxes it pays out of its own pocket.
I understand this, but that is included in the Employer Liability portion of $197.10 already.=>Correct OK.
So in addition to that, I am as well being deducted the $340.10 for a total of $537.20 being paid out by the company.What I don't understand is why the $340.10 is being deducted from the company end as well when it is already being deducted from my gross pay on the employee side. Unless there's (obviously) something I'm simply missing here.==========>>as mentioned abov