In a Subchapter S corp, profits are taxed as ordinary income to shareholders every year. The corp has to show -0- income on the books at tax filing. I'm not sure if the company (us) will be hit with this Top Earners "surcharge" twice? One time for corp income and then again as personal income? We shouldn't, but with this bunch, I wouldn't put it past them.
I was thinking about all of the other fees, taxes, and costs to us (as a small business) this morning, and how staggering it all is. We match SS and Medicare deductions for employees. Our insurance bond cost averages $12,000. per yr (based on income) which will be greatly reduced now that we don't have much work. BTW, all subcontractors are required to carry the same amount, or more Liability coverage or we pick up the slack. (I'm sure this is govt mandated along with all the other insurance regs.) The checks we write for state sales tax is mind blowing. Course we add that tax in our invoices, and the client picks up that cost. Sales tax just boggles my mind every time I write out an invoice. If I were the person paying that fee to the state I'd be seriously questioning the reasoning behind its existence.
We pay 410% of the employee cost of L&I to the Dept of Labor & Industries on labor, the client pays sales tax (9.5% in Seattle) on the goods. A small % to Wa State Employment Security Dept, a certain % of cost on capital expenditures are deductible and not sure what G&A is? (thank goodness for our CPA)
the number doesn't include labor, cost of goods, capital expenditures or G&A, right? |
