{"id":13908,"date":"2024-12-28T22:47:14","date_gmt":"2024-12-29T05:47:14","guid":{"rendered":"https:\/\/wcginc.com\/kb\/other-w-2-income\/"},"modified":"2026-01-26T17:09:40","modified_gmt":"2026-01-26T17:09:40","slug":"other-w-2-income","status":"publish","type":"epkb_post_type_1","link":"https:\/\/wcginc.com\/kb\/other-w-2-income\/","title":{"rendered":"Other W-2 Income"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 ez-toc-wrap-right counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table Of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wcginc.com\/kb\/other-w-2-income\/#Medicare_Tax_Savings\" >Medicare Tax Savings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wcginc.com\/kb\/other-w-2-income\/#Pass-Through_Entity_Tax_PTET_Deduction\" >Pass-Through Entity Tax (PTET) Deduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wcginc.com\/kb\/other-w-2-income\/#Qualified_Business_Income_Deduction_QBID\" >Qualified Business Income Deduction (QBID)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wcginc.com\/kb\/other-w-2-income\/#Net_Net\" >Net Net<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wcginc.com\/kb\/other-w-2-income\/#Taxpayers_Comprehensive_Guide_to_LLCs_and_S_Corps_2025_Edition\" >Taxpayer\u2019s Comprehensive Guide to LLCs and S Corps 2025 Edition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wcginc.com\/kb\/other-w-2-income\/#Talk_to_a_Small_Business_CPA_About_Your_Situation\" >Talk to a Small Business CPA About Your Situation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wcginc.com\/kb\/other-w-2-income\/#Schedule_Discovery_Meeting_Now\" >Schedule Discovery Meeting Now<\/a><\/li><\/ul><\/nav><\/div>\n<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text css=&#8221;&#8221; woodmart_inline=&#8221;no&#8221; text_larger=&#8221;no&#8221;]<img decoding=\"async\" class=\"size-full wp-image-31077 alignright\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/015346_354076945_other_w2_income_300.jpg\" alt=\"\" width=\"300\" height=\"200\" \/>By <strong>Jason Watson, CPA<\/strong><br \/>\nPosted Sunday, December 29, 2024<\/p>\n<p>You might not reap all the benefits of an S Corp election and subsequent self-employment tax savings if you have other W-2 income. But there is a lot to unpack here-<\/p>\n<ul>\n<li>You have Medicare savings versus forfeited Social Security taxes.<\/li>\n<\/ul>\n<ul>\n<li>You have the pass-through entity tax (PTET) deduction that is only available in an S Corp or partnership environment.<\/li>\n<\/ul>\n<ul>\n<li>You have the qualified business income deduction (QBID) that might be wage limited once you hit the 32% marginal tax bracket.<\/li>\n<\/ul>\n<p>These all interplay. We\u2019ll start with forfeited Social Security taxes first.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Medicare_Tax_Savings\"><\/span>Medicare Tax Savings<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You might not reap all the benefits of an S Corp election and subsequent self-employment tax savings if you have other W-2 income. Let\u2019s say you are an IT consultant for ABC Company, and you also do some outside consulting. If ABC Company pays you $170,000 in wages, you are already max\u2019ing out your Social Security contributions, and therefore any supplementary income regardless of your entity will automatically avoid additional Social Security taxes.<\/p>\n<p>You still obtain a small savings in Medicare taxes, which is generally immaterial at 2.9% or 3.8% of the side gig income. Then again, a tiny number multiplied by a big number can be a big number. We\u2019ll talk more about when forfeited taxes exceed the reduction in Medicare taxes in a bit.<\/p>\n<p>We find this very common among medical professions. Many times, a surgeon or anesthesiologist will be full-time for a hospital or medical group, but also moonlight on the side for smaller towns with smaller hospitals with even smaller budgets.<\/p>\n<p>The problem with piling extra W-2 salary from your S corporation onto W-2 salary from your main job is the S Corp\u2019s portion of payroll taxes. While both salaries might exceed your individual Social Security cap ($176,100 for the 2025 tax year), any salary in excess will unnecessarily increase the tax burden of your S Corp by 6.2% (the employer portion of Social Security taxes). Huh?<\/p>\n<p>In other words, your main job will stop collecting and paying Social Security taxes once you reach the annual limit. However, since Social Security taxes are paid by both the employee (you) and the business, when you run payroll with your S corporation, the business will collect and pay Social Security taxes just like your main job.<\/p>\n<p>On your individual tax return, you will get your portion of excess Social Security taxes refunded to you on Line 11 on Schedule 3 of Form 1040. That\u2019s the good news. The bad news is that the S Corp\u2019s portion will not be refunded. This is lost forever, and we call this a forfeited tax.<\/p>\n<p>Here is yet another table to explain this further-<\/p>\n<table style=\"width: 80%;\">\n<tbody>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\">Salary from Main Job<\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\">200,000<\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\">Income from Business<\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\">200,000<\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\">Medicare Tax w\/o S Corp<\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\">7,600<\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\"><\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\"><\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\">Salary<\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\">66,000<\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\"><\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\"><\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\">Payroll Tax w\/ S Corp<\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\"><\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\">\u00a0 ER Social Security<\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\">4,092<\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\">\u00a0 ER Medicare<\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\">957<\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\">\u00a0 EE Medicare w\/ Surtax<\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\">1,551<\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\">\u00a0 Total Payroll Taxes w\/ S Corp<\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\">6,600<\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\"><\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\"><\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\">Initial Savings<\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\">1,000<\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\">(7,600 less 6,600)<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\"><\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\"><\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\">Fees for Payroll, Tax Prep (typical)<\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\"><\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\">\u00a0 S Corp Tax Prep<\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\">1,500<\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\">\u00a0 Payroll Processing<\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\">1,200<\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\"><\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\"><\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left; width: 50%;\" width=\"45%\">Net Savings (loss)<\/td>\n<td style=\"text-align: center; width: 18%;\" width=\"14%\"><strong><span style=\"color: #0000ff;\">-1,700<\/span><\/strong><\/td>\n<td style=\"width: 2%;\" width=\"4%\"><\/td>\n<td style=\"width: 30%;\" width=\"36%\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Ok\u2026 here we go. Let\u2019s say you had a main job that earned $200,000 and you also run an online retailer business where you plan to make $200,000 net income after expenses (profit). You eclipsed your Social Security maximum with your main job salary, so the $200,000 is only subject to Medicare taxes plus the surtax, or $7,600 ($200,000 x 3.8%).<\/p>\n<p>Now we elect S Corp for your business and pay a salary of $66,000. The total taxes paid not considering your portion of Social Security which will be refunded is $6,600. ER is shorthand for \u201cemployer\u201d and EE refers to \u201cemployee.\u201d The initial savings is $1,000. However, now you must run payroll and file a corporate tax return. Therefore, the savings are gobbled up by normal professional fees.<\/p>\n<p>Therefore, in this situation perhaps a garden-variety LLC is more prudent from a cost-benefit and headache analysis. Having other W-2 income, however, could actually work in your favor- more on that later.<\/p>\n<p style=\"padding-left: 40px;\"><strong><span style=\"color: #0000ff;\">Sidebar:<\/span><\/strong> Having multiple sources of income can mess up your withholdings. Each source of income on its own might withhold correctly, but when combined, the total income will be in a higher tax bracket and unfortunately will have under-withheld as a household. Again, payroll tables don\u2019t know about other jobs or sources of income and can only make assumptions. Some tax planning is a must. More about tax planning within your S corporation payroll in a later chapter.<\/p>\n<p>Here is an internal table that we use during business consultations-<\/p>\n<table style=\"width: 90%;\">\n<tbody>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\"><\/td>\n<td style=\"text-align: center; width: 30%;\" colspan=\"2\" width=\"31%\"><strong>28% Salary<\/strong><\/td>\n<td style=\"text-align: center; width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center; width: 30%;\" colspan=\"2\" width=\"31%\"><strong>33% Salary<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<td style=\"width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\">Salary<\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"15%\">28.0%<\/td>\n<td style=\"width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"15%\">33.0%<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\">ER Social Security<\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"15%\">6.2%<\/td>\n<td style=\"width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"15%\">6.2%<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\">Forfeited Tax<\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"15%\">1.7%<\/td>\n<td style=\"width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"15%\">2.0%<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<td style=\"width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\">K-1 Income<\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"15%\">72.0%<\/td>\n<td style=\"width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"15%\">67.0%<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\">Medicare<\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"15%\">3.8%<\/td>\n<td style=\"width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"15%\">3.8%<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\">Medicare Savings<\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"15%\">2.7%<\/td>\n<td style=\"width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"15%\">2.5%<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<td style=\"width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\">Delta<\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"15%\">1.0%<\/td>\n<td style=\"width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center;\" colspan=\"2\" width=\"15%\">0.5%<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<td style=\"width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\">Net Biz Income (profit)<\/td>\n<td style=\"text-align: center;\" width=\"15%\">200,000<\/td>\n<td style=\"text-align: center;\" width=\"15%\">275,000<\/td>\n<td style=\"width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\">200,000<\/td>\n<td style=\"text-align: center;\" width=\"15%\">275,000<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\">Salary<\/td>\n<td style=\"text-align: center;\" width=\"15%\">56,000<\/td>\n<td style=\"text-align: center;\" width=\"15%\">77,000<\/td>\n<td style=\"width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\">66,000<\/td>\n<td style=\"text-align: center;\" width=\"15%\">90,750<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\">Forfeited Tax*<\/td>\n<td style=\"text-align: center;\" width=\"15%\">3,472<\/td>\n<td style=\"text-align: center;\" width=\"15%\">4,774<\/td>\n<td style=\"width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\">4,092<\/td>\n<td style=\"text-align: center;\" width=\"15%\">5,627<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\">Medicare Savings<\/td>\n<td style=\"text-align: center;\" width=\"15%\">5,472<\/td>\n<td style=\"text-align: center;\" width=\"15%\">7,524<\/td>\n<td style=\"width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\">5,092<\/td>\n<td style=\"text-align: center;\" width=\"15%\">7,002<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<td style=\"width: 2%;\" width=\"6%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 38%; text-align: left;\" width=\"30%\">Delta (cash savings)<\/td>\n<td style=\"text-align: center;\" width=\"15%\"><span style=\"color: #0000ff;\"><strong>2,000<\/strong><\/span><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><span style=\"color: #0000ff;\"><strong>2,750<\/strong><\/span><\/td>\n<td style=\"width: 2%;\" width=\"6%\"><span style=\"color: #0000ff;\"><strong>\u00a0<\/strong><\/span><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><span style=\"color: #0000ff;\"><strong>1,000<\/strong><\/span><\/td>\n<td style=\"text-align: center;\" width=\"15%\"><span style=\"color: #0000ff;\"><strong>1,375<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Tilt. OMG. We have four scenarios; salaries of 28% and 33%, and business incomes of $200,000 and $275,000. Let\u2019s take one and quickly dissect it.<\/p>\n<ul>\n<li>The forfeited tax is your S Corp\u2019s portion of Social Security taxes that must be paid but cannot be refunded. This is 28% x 6.2% or 1.7%. This 28% will be meaningful once we get into the Section 199A deduction.<\/li>\n<li>The Medicare savings is the remaining S Corp income that will now avoid this tax. This is 72% x 3.8% or 2.7%. The 72% is in the inverse of the salary percentage.<\/li>\n<li>The first delta is simply the forfeited tax less the Medicare savings, or 1.0%. The second delta is the calculated savings, and it ties out to the first delta since $200,000 x 1.0% is $2,000.<\/li>\n<\/ul>\n<p>Wait! There\u2019s more to consider when your main W-2 exceeds the SSA wage base.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Pass-Through_Entity_Tax_PTET_Deduction\"><\/span>Pass-Through Entity Tax (PTET) Deduction<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>We touched on this in an earlier chapter, but we need to bring it up again here. As you recall, with the Tax Cuts and Jobs Act, Congress wanted to limit state and local taxes (SALT) to $10,000. This means either state income taxes or real estate taxes, or both, were severely muted on their deductions.<\/p>\n<p>States got creative and created a state tax that was deducted on partnerships and S corporations tax returns (otherwise called pass-through entities\u2026 or PTE if you are a cool kid) resulting in lower federal taxable income. This tax, paid by the PTE, is then credited on the business owner\u2019s state income tax return (or in some cases the taxable state income is reduced by the PTE\u2019s income). This is also called the great SALT work-around.<\/p>\n<p>Cash is cash to a business owner whether it is spent by the business or the human, right? There are all kinds of rules, and not every business owner will benefit from the PTET deduction. Shocker, we know.<\/p>\n<p>Bottomline is this- does it feel better to pay your state income tax with personal dollars or business dollars? It\u2019s a bit rhetorical\u2026 no need to say it out loud or call us. However, you need to have a pass-through entity, which is either a partnership or an S Corp. A single-member LLC disregarded for tax purposes or a sole proprietorship does not qualify! Read more here-<\/p>\n<p><a href=\"https:\/\/wcginc.com\/blog\/pass-through-entity-tax-deduction\/\" target=\"_blank\" rel=\"noopener\">wcginc.com\/ptet<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Qualified_Business_Income_Deduction_QBID\"><\/span>Qualified Business Income Deduction (QBID)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You are likely getting tired of this section, but there is one more consideration. As mentioned elsewhere, once your household taxable income reaches the 32% marginal tax rate, your QBID has a second test. If you are a specified service trade or business (SSTB) such as attorney, accountant, physician, consultant, etc. you are mostly hosed. But if you are not an SSTB such as a retailer or an architect or realtor or the zillion other business owners, then read on.<\/p>\n<p>The qualified business income deduction is 20% of your business income. Easy. Once you hit the 32% marginal tax rate, then your QBI deduction is 20% of your business income or 50% of wages whichever is lower. Lower. As such, if you do not pay wages (complete with payroll filings and W-2s), you might be limited on your QBI deduction. Keep in mind that you cannot pay wages to yourself in a sole proprietorship or a single-member LLC that has not elected an S corporation election. You also cannot pay partners a wage in a partnership.<\/p>\n<p>As such, you might have regular W-2 wages that exceed the Social Security wage base and you might still need to S Corp elect your business entity just to capture the full effect of the qualified business income deduction.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Net_Net\"><\/span>Net Net<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>What do we do with all this data? We compare all the possible savings to the additional fees associated with an S Corp which are specifically business entity tax return preparation (Form 1120S) and payroll processing. From there, a simple cost-benefit analysis is done. It is not all dollars and cents, however. Please recall from another chapter that S corporations enjoy a significantly lower audit rate risk than plopping all this side gig income and expenses on Schedule C of your 1040 tax return.<\/p>\n<p>Make $200,000 with your W-2, and $150,000 with your used copier sales gig, and you live in California? S Corp is not shabby with about $7,500 in savings (factoring in franchise tax too by the way).<\/p>\n<p>It is not all dollars and cents, however. Please recall from another chapter that S corporations enjoy a significantly lower audit rate risk than plopping all this side gig income and expenses on Schedule C of your 1040 tax return.<\/p>\n<p>Ok, enough of that nonsense. Please contact us if you want your unique situation projected and analyzed.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=&#8221;25px&#8221;][vc_column_text]<style data-type=\"vc_shortcodes-custom-css\">#wd-6915e3dd2a9b5 .info-box-title{line-height:40px;font-size:30px;color:#473d3c;}#wd-6915e3dd2a9b5 .info-box-inner{line-height:26px;font-size:16px;color:#473d3c;}#wd-6915e437409dd .info-box-title{line-height:40px;font-size:30px;color:#473d3c;}#wd-6915e437409dd .info-box-inner{line-height:26px;font-size:16px;color:#473d3c;}#wd-68460c16bff16 .info-box-title{line-height:60px;font-size:50px;color:#473d3c;}#wd-68460c16bff16 .info-box-inner{line-height:26px;font-size:16px;color:#473d3c;}#wd-687b937e0887f .info-box-title{line-height:26px;font-size:16px;color:#473d3c;}#wd-687b937e0887f .info-box-inner{line-height:22px;font-size:12px;color:#473d3c;}#wd-687b9384e0d51 .info-box-title{line-height:26px;font-size:16px;color:#473d3c;}#wd-687b9384e0d51 .info-box-inner{line-height:22px;font-size:12px;color:#473d3c;}#wd-687b938a8f4b3 .info-box-title{line-height:26px;font-size:16px;color:#473d3c;}#wd-687b938a8f4b3 .info-box-inner{line-height:22px;font-size:12px;color:#473d3c;}#wd-68bcf7fc8516a .info-box-title{line-height:40px;font-size:30px;color:#473d3c;}#wd-68bcf7fc8516a .info-box-inner{line-height:26px;font-size:16px;color:#473d3c;}#wd-68bcfccd83cf7 .info-box-title{line-height:46px;font-size:36px;color:#473d3c;}#wd-68bcfccd83cf7 .info-box-inner{line-height:26px;font-size:16px;color:#473d3c;}@media (max-width: 1199px) {#wd-6915e3dd2a9b5 .info-box-title{line-height:34px;font-size:24px;}#wd-6915e3dd2a9b5 .info-box-inner{line-height:24px;font-size:14px;}#wd-6915e437409dd .info-box-title{line-height:34px;font-size:24px;}#wd-6915e437409dd .info-box-inner{line-height:24px;font-size:14px;}#wd-68460c16bff16 .info-box-title{line-height:50px;font-size:40px;}#wd-687b937e0887f .info-box-title{line-height:25px;font-size:15px;}#wd-687b9384e0d51 .info-box-title{line-height:25px;font-size:15px;}#wd-687b938a8f4b3 .info-box-title{line-height:25px;font-size:15px;}#wd-68bcf7fc8516a .info-box-title{line-height:34px;font-size:24px;}#wd-68bcf7fc8516a .info-box-inner{line-height:24px;font-size:14px;}#wd-68bcfccd83cf7 .info-box-title{line-height:36px;font-size:26px;}#wd-68bcfccd83cf7 .info-box-inner{line-height:24px;font-size:14px;}}@media (max-width: 767px) {#wd-6915e3dd2a9b5 .info-box-title{line-height:28px;font-size:18px;}#wd-6915e3dd2a9b5 .info-box-inner{line-height:24px;font-size:14px;}#wd-6915e437409dd .info-box-title{line-height:28px;font-size:18px;}#wd-6915e437409dd .info-box-inner{line-height:24px;font-size:14px;}#wd-68460c16bff16 .info-box-title{line-height:40px;font-size:30px;}#wd-687b937e0887f .info-box-title{line-height:24px;font-size:14px;}#wd-687b9384e0d51 .info-box-title{line-height:24px;font-size:14px;}#wd-687b938a8f4b3 .info-box-title{line-height:24px;font-size:14px;}#wd-68bcf7fc8516a .info-box-title{line-height:28px;font-size:18px;}#wd-68bcf7fc8516a .info-box-inner{line-height:24px;font-size:14px;}#wd-68bcfccd83cf7 .info-box-title{line-height:28px;font-size:18px;}#wd-68bcfccd83cf7 .info-box-inner{line-height:24px;font-size:14px;}}<\/style><div class=\"wpb-content-wrapper\">[vc_row][vc_column]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-6915e3dd2a9b5\" class=\" wd-rs-6915e3dd2a9b5 wd-info-box wd-wpb text-center box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title kb \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p style=\"text-align: center;\"><em>Jason Watson, CPA, is a Partner and the CEO of <strong>WCG CPAs &amp; Advisors<\/strong>, a boutique yet progressive tax, accounting and business consultation firm located in Colorado serving small business owners and taxpayers worldwide.<\/em><\/p>\n<div style=\"display: flex; justify-content: center;\"><a href=\"https:\/\/www.linkedin.com\/in\/jason-watson-cpa\/\"><img decoding=\"async\" class=\"alignnone wp-image-17327 entered lazyloaded\" style=\"height: 35px!important; width: auto!important;\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/linkedin-150x150-1.png.webp\" alt=\"Jason Watson CPA LinkedIn\" \/><\/a>\u00a0\u00a0\u00a0\u00a0\u00a0<a href=\"mailto:jason@wcginc.com\"><img decoding=\"async\" class=\"alignnone size-thumbnail wp-image-17334 entered lazyloaded\" style=\"height: 35px!important; width: auto!important;\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/mail-150x150-1.png.webp\" alt=\"Jason Watson CPA Email\" \/><\/a><\/div>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-6915e437409dd\" class=\" wd-rs-6915e437409dd wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title img-right kb \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title wd-font-weight-800 box-title-style-default font-primary wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"Taxpayers_Comprehensive_Guide_to_LLCs_and_S_Corps_2025_Edition\"><\/span>Taxpayer\u2019s Comprehensive Guide to LLCs and S Corps 2025 Edition<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p><img decoding=\"async\" class=\"size-full wp-image-31529 alignnone\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/LLC-S-Corp-Web-and-Social-GFX_275-250x300-1.webp\" alt=\"Taxpayer\u2019s Comprehensive Guide to LLCs and S Corps 2025 Edition\" width=\"250\" height=\"300\" \/>This KB article is an excerpt from our 420+ page book (some picture pages, but no scatch and sniff) which is available in paperback from\u00a0<a href=\"https:\/\/www.wcginc.com\/amazon\" target=\"_blank\" rel=\"noopener\">Amazon<\/a>, as an eBook for\u00a0<a href=\"https:\/\/www.wcginc.com\/kindle\" target=\"_blank\" rel=\"noopener\">Kindle<\/a>\u00a0and as a\u00a0<a href=\"https:\/\/www.wcginc.com\/pdf\" target=\"_blank\" rel=\"noopener\">PDF<\/a>\u00a0from ClickBank. We used to publish with iTunes and Nook, but keeping up with two different formats was brutal. You can cruise through these KB articles online, click on the fancy buttons below or\u00a0<a href=\"https:\/\/wcginc.com\/business-services\/book\/\" target=\"_blank\" rel=\"noopener\">visit our webpage<\/a>\u00a0which provides more information.<\/p>\n<table class=\"purchase-table\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\"><a href=\"\/amazon\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-6657 aligncenter\" style=\"float: none;\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/amazon-imageresized.png.webp\" alt=\"LLCs and S Corp Book Amazon\" width=\"50\" height=\"50\" \/><\/a><\/td>\n<td style=\"text-align: center;\"><a href=\"\/kindle\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-6658\" style=\"float: none;\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/kindle-imageresized.png.webp\" alt=\"LLCs and S Corp Book Kindle\" width=\"50\" height=\"50\" \/><\/a><\/td>\n<td style=\"text-align: center;\"><a href=\"\/pdf\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-6659 aligncenter\" style=\"float: none;\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/PDFresized.png.webp\" alt=\"LLCs and S Corp Book PDF\" width=\"50\" height=\"50\" \/><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\"><strong>$49.95<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>$39.95<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>$29.95<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column][\/vc_row][vc_row equal_height=\"yes\" content_placement=\"top\" el_id=\"consultation-secc\" woodmart_css_id=\"6756f7d427735\" responsive_spacing=\"eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NzU2ZjdkNDI3NzM1Iiwic2hvcnRjb2RlIjoidmNfcm93IiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=\" mobile_bg_img_hidden=\"no\" tablet_bg_img_hidden=\"no\" woodmart_parallax=\"0\" woodmart_gradient_switch=\"no\" woodmart_box_shadow=\"no\" wd_z_index=\"no\" woodmart_disable_overflow=\"0\" row_reverse_mobile=\"0\" row_reverse_tablet=\"0\" el_class=\"kb-consult\"][vc_column]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-68460c2ba6365\" class=\" wd-rs-68460c2ba6365 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title kb-fix \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title box-title-style-default wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"Talk_to_a_Small_Business_CPA_About_Your_Situation\"><\/span>Talk to a Small Business CPA About Your Situation<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Please use the form below to tell us a little about yourself, and what you have going on with your small business or 1099 contractor gig. <strong>WCG CPAs &amp; Advisors<\/strong> are small business CPAs, tax professionals and consultants, and we look forward to talking to you!<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[vc_row_inner el_id=\"consultation-inner\" woodmart_css_id=\"66fd6caf92fc0\" responsive_spacing=\"eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NmZkNmNhZjkyZmMwIiwic2hvcnRjb2RlIjoidmNfcm93X2lubmVyIiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=\" mobile_bg_img_hidden=\"no\" tablet_bg_img_hidden=\"no\" woodmart_parallax=\"0\" woodmart_gradient_switch=\"no\" woodmart_box_shadow=\"no\" wd_z_index=\"no\" woodmart_disable_overflow=\"0\" row_reverse_mobile=\"0\" row_reverse_tablet=\"0\"][vc_column_inner][vc_raw_js el_class=\"defaultBot\"]JTNDc2NyaXB0JTIwdHlwZSUzRCUyMnRleHQlMkZqYXZhc2NyaXB0JTIyJTIwc3JjJTNEJTIyaHR0cHMlM0ElMkYlMkZ3Y2dpbmMuam90Zm9ybS5jb20lMkZqc2Zvcm0lMkYyNTE2NjQ4Nzk0MTQ5NzMlMjIlM0UlM0MlMkZzY3JpcHQlM0U=[\/vc_raw_js][\/vc_column_inner][\/vc_row_inner]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-68460c16bff16\" class=\" wd-rs-68460c16bff16 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title defaultBot \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>The tax advisors, business consultants and rental property experts at <strong>WCG CPAs &amp; Advisors<\/strong> are not salespeople; we are not putting lipstick on a pig expecting you to love it. Our job remains being professionally detached, giving you information and letting you decide within our ethical guidelines and your risk profiles.<\/p>\n<p>We see far too many crazy schemes and half-baked ideas from attorneys and wealth managers. In some cases, they are good ideas. In most cases, all the entities, layering and mixed ownership is only the illusion of precision. As Chris Rock says, just because you can drive your car with your feet doesn\u2019t make it a good idea. In other words, let\u2019s not automatically convert \u201cyou can\u201d into \u201cyou must.\u201d<\/p>\n<p><strong>Let\u2019s chat so you can be smart about it.<\/strong><\/p>\n<p>We typically schedule a 20-minute complimentary quick chat with one of our Partners or our amazing Senior Tax Professionals to determine if we are a good fit for each other, and how an engagement with our team looks. Tax returns only? Business advisory? Tax strategy and planning? Rental property support?<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[vc_row_inner equal_height=\"yes\" el_class=\"boxes--pack\" woodmart_css_id=\"673b5f334f247\" responsive_spacing=\"eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NzNiNWYzMzRmMjQ3Iiwic2hvcnRjb2RlIjoidmNfcm93X2lubmVyIiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=\" mobile_bg_img_hidden=\"no\" tablet_bg_img_hidden=\"no\" woodmart_parallax=\"0\" woodmart_gradient_switch=\"no\" woodmart_box_shadow=\"no\" wd_z_index=\"no\" woodmart_disable_overflow=\"0\" row_reverse_mobile=\"0\" row_reverse_tablet=\"0\"][vc_column_inner width=\"1\/3\"]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-687b937e0887f\" class=\" wd-rs-687b937e0887f wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none business-boxes \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/Text-WCG-Offices-1.jpg\" class=\"attachment-full size-full\" alt=\"Text WCG Offices\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title wd-font-weight-600 box-title-style-default font-primary wd-fontsize-m\">Text WCG Offices<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Need to get in touch through a quick text?\u00a0 We\u2019ll respond back within a day and get going!<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"sms:+17193452100?&amp;body=Hey%20WCG!%20Please%20call%20me%20to%20discuss%20your%20CPA%20services\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][vc_column_inner width=\"1\/3\"]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-687b9384e0d51\" class=\" wd-rs-687b9384e0d51 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none business-boxes \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/Chat-Our-Amazing-Team-1.jpg\" class=\"attachment-full size-full\" alt=\"Chat our amazing team\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title wd-font-weight-600 box-title-style-default font-primary wd-fontsize-m\">Call Our Amazing Team<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p class=\" \">If you need to speak to a tax professional now, give us a call and we'll get you connected.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<a class=\"wd-info-box-link wd-fill\" aria-label=\"Infobox link\" href=\"tel:719-387-9800\" title=\"\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][vc_column_inner width=\"1\/3\"]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-687b938a8f4b3\" class=\" wd-rs-687b938a8f4b3 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none business-boxes nav-button-chat \">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"box-icon-wrapper  box-with-icon box-icon-simple\">\n\t\t\t\t\t\t\t<div class=\"info-box-icon\">\n\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"622\" height=\"622\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/Chat-With-a-Tax-Pro-2.jpg\" class=\"attachment-full size-full\" alt=\"Chat with a tax pro\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h4 class=\"info-box-title title wd-font-weight-600 box-title-style-default font-primary wd-fontsize-m\">Chat With a Tax Pro<\/h4>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Taxes can be tricky. Chat with a WCG human now and get questions answered.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row equal_height=\"yes\" content_placement=\"top\" woodmart_css_id=\"684abef7ecaa9\" responsive_spacing=\"eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2ODRhYmVmN2VjYWE5Iiwic2hvcnRjb2RlIjoidmNfcm93IiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=\" mobile_bg_img_hidden=\"no\" tablet_bg_img_hidden=\"no\" woodmart_parallax=\"0\" woodmart_gradient_switch=\"no\" woodmart_box_shadow=\"no\" wd_z_index=\"no\" woodmart_disable_overflow=\"0\" row_reverse_mobile=\"0\" row_reverse_tablet=\"0\" el_class=\"kb-consult\"][vc_column]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-68bcf7fc8516a\" class=\" wd-rs-68bcf7fc8516a wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title wd-font-weight-600 box-title-style-default font-primary wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"Schedule_Discovery_Meeting_Now\"><\/span>Schedule Discovery Meeting Now<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[vc_row_inner content_placement=\"middle\" el_class=\"client-review-secs box--card\" woodmart_css_id=\"672e712482714\" responsive_spacing=\"eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NzJlNzEyNDgyNzE0Iiwic2hvcnRjb2RlIjoidmNfcm93X2lubmVyIiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=\" mobile_bg_img_hidden=\"no\" tablet_bg_img_hidden=\"no\" woodmart_parallax=\"0\" woodmart_gradient_switch=\"no\" woodmart_box_shadow=\"no\" wd_z_index=\"no\" woodmart_disable_overflow=\"0\" row_reverse_mobile=\"0\" row_reverse_tablet=\"0\"][vc_column_inner width=\"1\/3\" woodmart_css_id=\"671780b35b49a\" parallax_scroll=\"no\" woodmart_sticky_column=\"false\" wd_collapsible_content_switcher=\"no\" wd_column_role_offcanvas_desktop=\"no\" wd_column_role_offcanvas_tablet=\"no\" wd_column_role_offcanvas_mobile=\"no\" wd_column_role_content_desktop=\"no\" wd_column_role_content_tablet=\"no\" wd_column_role_content_mobile=\"no\" mobile_bg_img_hidden=\"no\" tablet_bg_img_hidden=\"no\" woodmart_parallax=\"0\" woodmart_box_shadow=\"no\" responsive_spacing=\"eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NzE3ODBiMzViNDlhIiwic2hvcnRjb2RlIjoidmNfY29sdW1uX2lubmVyIiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=\" wd_z_index=\"no\"]\t\t<div id=\"wd-68874e76cd7bc\" class=\"wd-image wd-wpb wd-rs-68874e76cd7bc text-left \">\n\t\t\t\n\t\t\t<img decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/265518_2057667071_tax_consultation_300-1.webp\" class=\"attachment-full size-full\" alt=\"Request a Meeting with WCG Inc\" \/>\n\t\t\t\t\t<\/div>\n\t\t[\/vc_column_inner][vc_column_inner width=\"2\/3\" woodmart_css_id=\"671780c0415fb\" parallax_scroll=\"no\" woodmart_sticky_column=\"false\" wd_collapsible_content_switcher=\"no\" wd_column_role_offcanvas_desktop=\"no\" wd_column_role_offcanvas_tablet=\"no\" wd_column_role_offcanvas_mobile=\"no\" wd_column_role_content_desktop=\"no\" wd_column_role_content_tablet=\"no\" wd_column_role_content_mobile=\"no\" mobile_bg_img_hidden=\"no\" tablet_bg_img_hidden=\"no\" woodmart_parallax=\"0\" woodmart_box_shadow=\"no\" responsive_spacing=\"eyJwYXJhbV90eXBlIjoid29vZG1hcnRfcmVzcG9uc2l2ZV9zcGFjaW5nIiwic2VsZWN0b3JfaWQiOiI2NzE3ODBjMDQxNWZiIiwic2hvcnRjb2RlIjoidmNfY29sdW1uX2lubmVyIiwiZGF0YSI6eyJ0YWJsZXQiOnt9LCJtb2JpbGUiOnt9fX0=\" wd_z_index=\"no\"]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-68bcfccd83cf7\" class=\" wd-rs-68bcfccd83cf7 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none with-btn box-btn-static \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Ready to schedule now and talk about S Corp and reasonable salary and all that gibberish? Let's do it! Here is a link to a Discovery Meeting with one of our Partners or Senior Tax Professionals to understand your tax footprint and objectives, and how <strong>WCG CPAs &amp; Advisors<\/strong> might help.<\/p>\n<\/div>\n\n\t\t\t\t\t\t<div class=\"info-btn-wrapper\"><div id=\"wd-6a31bb308a16a\" class=\"  wd-button-wrapper text-left\"><a href=\"https:\/\/calendly.com\/wcg-cpas-advisors\/discovery-meeting-instant\" title=\"\" target=\"_blank\" class=\"btn btn-style-default btn-shape-rectangle btn-size-default\">Schedule Meeting<\/a><\/div><\/div>\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row]<\/div>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>You might not reap all the benefits of an S Corp election and subsequent self-employment tax savings if you have other W-2 income. Let\u2019s say you are an IT consultant for ABC Company, and you also do some outside consulting. If ABC Company pays you $[&#8230;]<\/p>\n","protected":false},"author":6,"featured_media":31077,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"epkb_post_type_1_category":[78],"epkb_post_type_1_tag":[],"class_list":["post-13908","epkb_post_type_1","type-epkb_post_type_1","status-publish","has-post-thumbnail","hentry","epkb_post_type_1_category-chap-4-the-185-reasons-to-not-have-an-s-corp-or-llc"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Other W-2 Income - S Corp Benefits Reduced - WCG CPAs &amp; Advisors<\/title>\n<meta name=\"description\" content=\"You might not reap all the benefits of an S Corp election and subsequent self-employment tax savings if you have other W-2 income. 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