Sample Federal Payroll Calculations

ATTENTION S CORPORATIONS:

The IRS has mandated that you draw a reasonable salary from your business. Please find

below some sample calculations. A good rule of thumb is to draw between 30% - 40% of

your 1099 income as a wage. Note that the figures below are samples. They will change

for each state and for the number of exemptions an individual claims. Our firm can

prepare your payroll and take care of your payroll reports. Our fees are listed on the main

fee page. Your other alternative is to purchase a program such as Checkmark Payroll and

calculate your own payroll. Please make sure that you file your quarterly payroll reports

Income Taxes withheld

Salary $2083.33

Federal $150.42

Social Security $129.17

Medicare $30.21

Net check that you write to yourself is $1773.53

Your calculation for your 941 payroll tax deposit to the IRS is

$309.80(the taxes withheld from your wages) PLUS $159.38 (the employer portion of the

payroll taxes). Your total 941 payment due is $469.18. Take a business check and tax

deposit coupon to the bank and make this payment.