S-Corp Payroll Tax Calculator

Model the payroll-tax difference — not a broad savings claim.

Calculate Payroll Tax Difference →View all products

A narrower, more credible comparison

Many online calculators show a broad "tax savings" number while hiding salary and overhead assumptions. This tool models only payroll-related taxes — Social Security, Medicare, and Additional Medicare — plus the annual costs you enter. It does not recommend an entity election.

Compare payroll taxes

Enter your numbers below. All calculations run in your browser — nothing is saved or uploaded. You must enter a proposed reasonable salary; no default percentage is applied.

Filing status

Schedule C net profit (before salary and S-corp costs) *

Net profit from the business before any owner W-2 salary or S-corporation overhead.

Your other W-2 Social Security wages (Boxes 3 + 7) *

From jobs other than the S corporation — used for Social Security wage base only.

Household W-2 Medicare wages (Box 5) *

Combined Box 5 from all W-2s in the household (excluding the proposed S-corp salary).

Proposed reasonable salary *

Facts-and-circumstances compensation — enter your own estimate. No percentage default is provided.

Annual incremental S-corporation costs *

Payroll service, separate return, bookkeeping, state/entity fees. Enter 0 if none.

This is not an entity-election recommendation. Federal income tax, QBI, state tax, and distributions are not included in the result.

Need a full federal estimate?

The 2026 Tax Planner combines W-2 and Schedule C for a broader federal picture.

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What is included

Payroll-tax-only comparison
You enter salary and costs — no default %
Side-by-side calculation trace
Fails closed on invalid inputs
100% browser-only — no persistence
No account required

Modeled in the result

• Sole-proprietor SE tax (92.35% earnings factor)
• S-corporation employer and employee FICA on entered salary
• Additional Medicare tax using household Box 5 wages
• Your entered annual incremental S-corporation costs

Not included (can change the outcome)

• Federal income tax and half-SE-tax deduction effect
• QBI (§199A) differences between entity types
• State income, franchise, or entity taxes
• Shareholder distributions, basis, or multi-owner rules

Sources and limitations

Rates and thresholds use 2026 IRS and SSA sources archived in our federal tax configuration, including IRC §1401 (SE tax), IRC §3101 / Publication 15 (FICA), Form 8959 (Additional Medicare), and SSA wage base data. Reasonable compensation is facts-and-circumstances — you enter your own salary; no percentage is labeled as defensible.

This tool is illustrative only and is not CPA/EA reviewed. Consult a qualified tax professional before making entity elections.