United States version
How it works
Compare a narrowly scoped basic payroll-tax scenario only after wage base and reasonable compensation have been verified.
This is the United States planning view, with monetary inputs and outputs in USD. A currency label does not establish that a tax rate, construction price, coverage rule or legal limit has been verified locally. The inputs and limitations below describe the actual scope.
Input query strings and outputs
Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.
Input query strings
7-
?businessProfit=Business profit before owner compensation and incremental administrationMoney · Required · Default: 120,000
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?reasonableSalary=Independently supported reasonable owner salaryMoney · Required · Default: 70,000
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?socialSecurityWageBase=Confirmed applicable annual Social Security wage baseMoney · Required · Default: 0
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?otherSocialSecurityWages=Other wages using that wage baseMoney · Required · Default: 0
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?combinedSsRate=Confirmed combined employee/employer Social Security ratePercentage · Required · Default: 12.4
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?combinedMedicareRate=Confirmed combined basic Medicare ratePercentage · Required · Default: 2.9
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?extraAdmin=Incremental S corporation administration costMoney · Required · Default: 2,500
Outputs
4-
seNetEarningsModeled sole-proprietor net earnings for basic SE taxCurrency · Currency: USD
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soleBasicPayrollModeled basic self-employment payroll taxesCurrency · Currency: USD
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sCorpBasicPayrollModeled combined basic payroll taxes on salaryCurrency · Currency: USD
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differenceBasic payroll-tax difference less extra administrationCurrency · Primary output · Currency: USD
Formula
basic SE payroll scenario uses 92.35% of entered self-employment profit; compare applicable capped Social Security and uncapped basic Medicare with salary payroll.
Calculations retain numeric precision internally. Displayed values are rounded for readability. Quantities that must be purchased as whole units are rounded up only where the formula explicitly requires it.
Read the inputs before calculating
- Business profit before owner compensation and incremental administration: Enter the quantity described by the label.
- Independently supported reasonable owner salary: Enter the quantity described by the label.
- Confirmed applicable annual Social Security wage base: Enter the quantity described by the label.
- Other wages using that wage base: Enter the quantity described by the label.
- Confirmed combined employee/employer Social Security rate: Enter the quantity described by the label.
- Confirmed combined basic Medicare rate: Enter the quantity described by the label.
- Incremental S corporation administration cost: Enter the quantity described by the label.
Reproducible worked example
The following is a fictional arithmetic example, not a local quote, a verified claimant or a market forecast. Its values are included so the formula can be checked. The form does not automatically confirm any verification checkbox.
The Social Security wage base reference is 184,500 for 2026; other entered values are fictional.
| Input | Example value |
|---|---|
| Business profit before owner compensation and incremental administration | 120,000 |
| Independently supported reasonable owner salary | 70,000 |
| Confirmed applicable annual Social Security wage base | 184,500 |
| Other wages using that wage base | 0 |
| Confirmed combined employee/employer Social Security rate | 12.4 |
| Confirmed combined basic Medicare rate | 2.9 |
| Incremental S corporation administration cost | 2,500 |
| Output | Calculated result |
|---|---|
| Modeled sole-proprietor net earnings for basic SE tax | USD 110,820 |
| Modeled basic self-employment payroll taxes | USD 16,955.46 |
| Modeled combined basic payroll taxes on salary | USD 10,710 |
| Basic payroll-tax difference less extra administration | USD 3,745.46 |
Interpreting a changed assumption
Start with one complete scenario and change only one input when diagnosing a difference. Recheck units, the period of every rate, whether an amount is recurring or one-off, and whether a cost is already included elsewhere. A larger calculated benefit is not evidence that an assumption is more likely to occur.
Limitations
- Inputs are explicit management assumptions. This is not a valuation opinion, tax filing, employment-law assessment or investment recommendation.
- This is not a full entity tax comparison. Employer versus employee wage-base coordination, other employers, Additional Medicare Tax, income tax, QBI, benefits, state taxes, unemployment taxes and deductibility can change the result. No reasonable-compensation or election eligibility decision is made.
Frequently asked questions
What does this LLC Versus S Corporation Payroll result represent?
Compare a narrowly scoped basic payroll-tax scenario only after wage base and reasonable compensation have been verified. It applies the displayed formula to your inputs; it does not infer omitted facts.
Are the starting amounts verified United States prices or legal rules?
No. Numeric defaults are illustrative unless an input or dated reference explicitly identifies a researched component. Currency is USD; local quotes, eligibility and unsupported rules must be entered and verified separately.
What must I check before relying on the result?
Inputs are explicit management assumptions. This is not a valuation opinion, tax filing, employment-law assessment or investment recommendation.
Can I compare or share different assumptions?
Change one assumption at a time and use the browser-local project or share controls. A shared URL contains the encoded input values; do not include information you do not wish to disclose.
Sources and reference scope
- CFPB loan-estimate explanation — retrieved 2026-09-24. US cost components; the general amortization formula is stated separately.
- NIST unit conversion guidance — retrieved 2026-09-24. Unit definitions; geometry and financial arithmetic in these worksheets are explicitly stated.
These references support only their stated scope. They are not evidence that every local rule or price needed by the master expansion has been loaded.