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re: Self employment tax, best structure to have in place to eliminate??

Posted on 1/21/17 at 12:21 pm to
Posted by tigeryat
God's Country
Member since Oct 2005
2918 posts
Posted on 1/21/17 at 12:21 pm to
Besides the IRS saying your low salary is unreasonable, the lower the salary, the less money you can put into retirement. If you have a one person business, you need to have $212,000 in wages to max out your SEP at $53,000. The SEP contribution tax savings more than offsets the SS and MC tax on the additinal wages.
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