I have registered a corporation and I am working in the state of PA. I am trying to get a handle on estimated earnings.
I have to pay several different kinds of taxes. Is this a good list of taxes?
On total Income
- Employment tax 10%
On corporations profits
- Federal Income Tax 24% (or whatever bracket I fall into)
- State Income Tax 3.08% (flat rate in PA)
On my salaray
- Federal Income Tax 24% (or whatever bracket I fall into)
- State Income Tax 3.08% (flat rate in PA)
- Social Security 12.40%
Sample Calculation
For sake of calculations, let's say I contract at $48.07 per hour on a Corp to Corp basis which, working 40 hours a week for a year becomes $100,000
So here are my calculations
- Corporate Income $100K
Payroll Tax (10%) = 10K
My Salary $40K
My personal Income after Federal (24%), State (3.07%) and Social Security (12.40%) deductions is $24,212
Corporate expenses $10k
- Corporate Income after Federal (24%) and State (3.07%) deductions is $29,172
Am I correct in assuming these figures or am I missing anything?
