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FdmFdm's avatar

Are there also additional Medicare taxes on the SCorp salary?

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Kenny Kim, MD, EA, CTC's avatar

Yes, you will have an extra 0.9% additional medicare tax on the S Corp salary if your total earned income goes over certain thresholds ($250k if you are married filing joint, $200k if single). Your S corp salary counts towards those limits just like any other job income. So, if you already earn $250k in W-2 income (for example, as an employed doctor) and your S corp pays you another $100k in W2 wages, that extra $100k would be subject to the additional medicare tax.

Keep in mind, this tax applies only to wages and SE income - not your S corp dividends. Hope this helps. :)

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