Respuesta :
Answer:
on average medicare tax is 1.45 % tax and social security is 6.25 % so simply multiply by those numbers their net income and go from there
Explanation:
The net tax paid by Adam and Tom on their salary is $6,885. The tax to be paid by the S corporation on the profit is $ 5,871.375.
Under the US social security system, the employee working in the US has to pay Medicare and the social security tax. The tax included 6.2% Social Security tax and 1.45% Medicare tax on the net income of the employee.
The social security and Medicare tax is termed as FICA tax and is 7.65% in total.
The earning of each employee = $90,000
So, the FICA tax to be paid by Adam and Tom individually is = $ 90,000 [tex]\rm \times\;\dfrac{7.65}{100}[/tex]
FICA = $6,885
The corporation has also been earning, so the FICA of 7.65% has to be paid by each employee of the S corporation.
FICA for S corporation has been:
Earning of the S corporation = $76,750
FICA = $76,750 [tex]\rm \times\;\dfrac{7.65}{100}[/tex]
FICA = $5,871.375
The net tax paid by Adam and Tom on their salary is $ 6,885. The tax to be paid by the S corporation on the profit is $ 5,871.375.
For more information about the Social security tax and Medicare tax, refer to the link:
https://brainly.com/question/18268724
