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    rmbrandt's Avatar
    rmbrandt Posts: 1, Reputation: 1
    New Member

    Nov 1, 2006, 10:55 PM
    What is the rule of thumb for determining the amount of income a company should pay out as "payroll." (for paying the correct amounts of Medicare, Social Security, etc. etc.). Looking for the generally accepted rule-of-thumb.. I can't remember it.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man

    Nov 2, 2006, 07:28 AM
    The question doesn't make sense. Payroll is the salaries you pay your employees. There are specific percentages of witholding based on the salary. The IRS and your local government can give you tables on what to withhold.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member

    Nov 3, 2006, 10:31 PM
    I agree with Scott.
    smrtpants's Avatar
    smrtpants Posts: 7, Reputation: 2
    New Member

    Nov 7, 2006, 05:18 AM
    Sounds like this question pertains more to a 'self-employed', or family business, situation whereby specific salaries are not actually paid, per se... yet revenue is generated and will be considered income unless otherwise offset as expenses such as salary, etc.

    If this is the case, then I'm thinking that the nature of the business will dictate which 'rule of thumb' should be used, however unless actual wages are paid, there can be no legitimate corresponding medicare, etc. employer expenses as these costs are specific and cannot be 'ball-parked'/'eye-balled'...

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