S-Corp payroll tax calculator

S-Corp payroll tax is one of the main moving parts in an S-Corp tax savings estimate. In a simplified comparison, salary paid to a shareholder-employee is generally subject to Social Security and Medicare payroll taxes, while remaining profit may be distributed differently.

SCorpMath does not run payroll or calculate full payroll compliance. It estimates how salary payroll taxes affect the rough comparison between default sole proprietor or LLC treatment and S-Corp treatment.

This example uses 2026 assumptions, $120,000 of net business profit, a $70,000 S-Corp salary, $3,000 of admin costs, single filing status, and no other W-2 wages. It is an example only, not a recommendation.

To adjust salary, profit, admin costs, filing status, or other W-2 wages, use the main S-Corp tax savings calculator.

In a simplified federal estimate, payroll taxes on S-Corp salary commonly include the Social Security portion and the Medicare portion. The calculator can also include the employer side as an economic cost of S-Corp treatment.

• Employee Social Security tax on wages up to the annual wage base.
• Employer Social Security tax on wages up to the annual wage base.
• Employee Medicare tax.
• Employer Medicare tax.
• Additional Medicare Tax threshold logic for higher wage assumptions.

A real payroll setup may involve more than Social Security and Medicare payroll taxes. SCorpMath does not estimate every payroll compliance item.

• Federal unemployment tax.
• State unemployment or disability insurance.
• Payroll provider subscription fees.
• Workers compensation insurance.
• Payroll deposit schedules or filing penalties.
• State or local payroll rules.

The payroll tax estimate depends heavily on the salary assumption. A lower salary can reduce estimated payroll taxes, but that does not mean the salary is reasonable. SCorpMath does not determine reasonable compensation or provide a safe salary amount.

Read the reasonable salary guide before relying on any salary-based estimate.