b'THE OFFICIAL NFBA MAGAZINEcontinued from page: 9Strategy #5 -2.9% Medicare tax) would have to be paid on the entire Proper Use of$100,000, totaling $15,300 ($100,000 x 15.3%). In Entities comparison, if an S corporation has a profit of $100,000 The tax rulesand you pay yourself a reasonable salary of $40,000, are different forthe other $60,000 would flow to you as profit (K-1) and S corporations,is not subject to Social Security and Medicare taxes.STILL BEING LET DOWN BY YOUR C corporationsYou only pay social security and Medicare tax on the a n d S o l e$40,000 salary, for a tax of $6,120 ($40,000 x 15.3%). In Proprietorships. You want to use the entity or entitiesthis scenario, using an S corporation would save $9,180CURRENT METAL SUPPLY CHAIN ? which require you to pay the least amount of tax.($15,300 - $6,120) in taxes each year. While it would be BUSINESS MANAGEMENTFor example, if you operate your business as a solenice to have the whole $100,000 excluded from Social proprietor, all profit (up to the taxable maximum) isSecurity and Medicare tax, the IRS requires that owner-subject to Social Security and Medicare taxes. In an Semployees of an S corporation be paid a salary that is corporation, profits are distributed through a K-1 anda reasonable amount for the work being performed.FGM PROVIDES JUST-IN-TIME INVENTORY WITH 30 STOCKING LOCATIONSare not subject to Social Security and Medicare taxes.Conclusion ACROSS THE U.S. AND VETTED GLOBAL SOURCING OPTIONS.Having your profits flow to you as K-1 income, insteadAs a result of people not using all the deductions of as profit from a sole proprietorship, could save youand laws available, billions of dollars are overpaid inGalvanized, Galvalume, Aluminum, Cold Rolled and Pre-Paintthousands each year in Social Security and Medicaretaxes. According to the IRS commissioner, millions of taxes.taxpayers are overpaying their taxes each year. Begin For example, if a sole proprietorship has a profit ofusing these five strategies to avoid paying more than $100,000, a 15.3% tax (12.4% Social Security tax andyou are required in taxes.THE PROOF IS IN OUR NUMBERS280k # 30 0.5%Experienced Counsel and BE THE SHARPEST TOOL IN THE SHED physical tonsRanked and Youngest Quality ClaimsDetermined Professionals & CHOOSE TRAC-RITE DOORS shipped in Company on Metal as a Percentage2022 Center News Top 50 List SoldAttorneysOSHA Defense You CanLabor & Employment Rely On for Law EffectiveConstruction Law Business Law Representation Litigation Workers Comp DefenseStephen A. WatringGary W. AumanWilliam H. Barney, IIIRichard L. Carr, Jr.Donald B. Rineer Contact us today to discuss how the most sophisticated supply chain Amy C. MitchellDouglas S. Jenks management team in the industry can help bring certainty to your company.Abigail K. White PERFORMANCEVALUESERVICEDavid M. Rickert 800-448-8979937-223-6003 Matthew J. Bakotaamfdayton.com tracrite.comtr@tracrite.com flackglobalmetals.com | 877.721.1172 |sales@flackglobalmetals.comPHOENIX |HOUSTON |CLEVELAND |CHICAGO |ATLANTA10 / FRAME BUILDER - VOL5 1'