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Bill owns 100% of an S corporation. This year, the corporation paid Bill a salary...

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Accounting

Bill owns 100% of an S corporation. This year, the corporation paid Bill a salary of $100,000. Bill's share of S corporation income for the year was $42,000. Assuming this is Bill's only income for the year. Assume the Social Security rate is 6.2% and Medicare rate is 1.45%. If an amount is zero, enter "0". If required, round your answers to nearest dollar.

a. What amount that Bill received is subject to payroll taxes? $ ____

To self-employment taxes? $ ____

b. Compute Bill's payroll and self-employment income taxes.

Bill's payroll taxes: $ ____

Self-employment income taxes: $ ____

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