[mdrobbin]

I know SE Tax is 15.3% for FICA which includes employer/employee contribution, but are they (i.e. sole proprietor) exempt from paying FUTA?

FAR - 2012 - PASSED (YAEGER)
AUD - 2012 - PASSED (YAEGER + NINJA NOTES)
BEC - 2012 - PASSED (YAEGER + NINJA NOTES)
REG - 2013 - PASSED (YAEGER + NINJA NOTES + NINJA AUDIO)

ETHICS - 2013 - PASSED

DONE!!! Thank you A71 for all the support! Hiya!!!

[jeff]

They pay SE tax because they aren't W2 employees…and therefore, no FUTA.

AUD - 79
BEC - 80
FAR - 76
REG - 92

Jeff Elliott, CPA (KS)
NINJA CPA | NINJA CMA | NINJA CPE | Another71

[Noct]

And no SUTA either… but they also cannot claim benefits. There is one exception however. Owner/operators of SCorps are W-2 employees and are subject to UI tax, but they are still “self-employed” in that they can claim the SE health insurance deduction.

FAR - 79 - 07/2012
AUD - 65, 78 - 11/2012
BEC - 76 - 11/2012
REG - 78 - 01/2013
ETH - 98 - 01/2013

Material: Wiley books

[jelly]

The >2% SCorp owners can claim the health deduction; it is also added to their W2 income, and limits include the entity's net income.

Couldn't pass again!

[Author]

Replies