When and How Employer Pay His/Own Social Security and Medicare?

when you file your business on Sch C and the 'net' amount is $400 or more you will complete a Sch SE where you calculate your self employment tax

if you anticipate owing you need to prepay on 1040 ES each quarter, with only Sept. 15 and Jan 17 vouchers still open

When you file your income tax return as a sole proprietor, you'll fill out a schedule SE based on the net profit for your business - that's for self employment tax which is for ss and medicare.

You had better get you some good professional assistance with your business operation that you are supposed to have going on now with a number of employees and you are NOT one of them at this time for this purpose.

Corporate officers are specifically included within the definition of employee for FICA (Federal Insurance Contributions Act), FUTA (Federal Unemployment Tax Act) and federal income tax withholding under the Internal Revenue Code. When corporate officers perform services for the corporation, and receive or are entitled to receive payments, their compensation is generally considered wages. Subchapter S corporations should treat payments for services to officers as wages and not as distributions of cash and property or loans to shareholders.

S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates.

The Internal Revenue Code establishes that any officer of a corporation, including S corporations, is an employee of the corporation for federal employment tax purposes. S corporations should not attempt to avoid paying employment taxes by having their officers treat their compensation as cash distributions, payments of personal expenses, and/or loans rather than as wages.

This fact sheet clarifies information that small business taxpayers should understand regarding the tax law for corporate officers who perform services.

Who’s an employee of the corporation?

http://www.irs.gov/newsroom/article/0,,id=200293,0...

What's a Reasonable Salary?

The instructions to the Form 1120S, U.S. Income Tax Return for an S Corporation, state "Distributions and other payments by an S corporation to a corporate officer must be treated as wages to the extent the amounts are reasonable compensation for services rendered to the corporation."

The amount of the compensation will never exceed the amount received by the shareholder either directly or indirectly. However, if cash or property or the right to receive cash and property did go the shareholder, a salary amount must be determined and the level of salary must be reasonable and appropriate.

There are no specific guidelines for reasonable compensation in the Code or the Regulations. The various courts that have ruled on this issue have based their determinations on the facts and circumstances of each case.

Some factors considered by the courts in determining reasonable compensation:

Hope that you find the above enclosed information useful. 07/14/2012

Here is the calculator to figure your self-employed social security and medicare taxes from the SSA website.

If you are a sole proprietor, you will pay income taxes on your schedule C and self employment tax on your schedule SE (this is employer/employee fica)

If you are a corporation and not paying yourself - no income, no fica taxes.

If you are a corporation,you pay yourself via the regular payroll process.

It is normally detected from the salary on each time , from your salary account

You pay it when you pay your own taxes

WTF? No paycheck, no taxes. THINK.