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I don't think our new CPA is setting up our taxable income…

Hi, I don't think...

Hi, I don't think our new CPA is setting up our taxable income correctly for owner/ employer wages on a SUB S LLC in Texas

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

First Question: If I have a salary of 38k as an owner/ shareholder/ employee, what taxes do I have to pay and about how much should they be?

Accountant's Assistant: You have to pay for your first question. If you sign up for a membership, there is a free trial for questions after that.

How much is the first question/ trial?

Accountant's Assistant: Is there anything else the Accountant should be aware of?

Yes

Accountant's Assistant: What else should I tell the Accountant?

126k in company income, ~80k in expense, ~38k is my salary, I have 11k business miles on my personal vehicle, I'm the owner/ only employee and the company is a sub S LLC.

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Answered in 12 minutes by:
1/2/2018
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,395
Experience: Certified Public Accountant
Verified

Hi, my name is Mark. I will be happy to help you with your questions. As a LLC that is treated like a S-Corporation, your $38,000 of wages would be subject to both FICA and medicare. FICA is 6.2% and Medicare is 1.45%. Both the employer and employee each pay 7.65%. The company would also pay Federal and State Unemployment taxes on this amount. The Federal unemployment is on the first $7,000 of each employee's wages.

Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,395
Experience: Certified Public Accountant
Verified
Mark Taylor and 87 other Tax Specialists are ready to help you
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Customer reply replied 1 month ago
that would be 2,907 x 2 = 5,814$ total in Taxes? Would I or the Sub S LLC pay any other taxes? My cpa is saying that I owe 5814 x 2 = 11,200$
Customer reply replied 1 month ago
are we still live?
Customer reply replied 1 month ago
also, wouldn't my 11,000 business miles on my vehicle reduce the 38,000 (reduced taxable income).
Customer reply replied 1 month ago
if the federal unemployment is only 6.2% on the first 7k, that number is *****$
PDtax
PDtax, Owner
Category: Tax
Satisfied Customers: 8,572
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Phone call session started

I am so sorry, I had to step away unexpectedly. Do you know if the $11,2000 includes any withholding?

Yes, the 11,000 of mileage would reduce your taxable income (S-Corporation). The treatment of this depends on whether the vehicle is owned personal or in the corporation.

The Federal Unemployment tax would be $42 the state amount would be a bit higher. This would likely be around $200.

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