TrueCalci

US S-corp payroll tax comparison

scorp_optimizer

Read-onlyIdempotent

Compute employment taxes with and without an S-Corporation election: reasonable officer salary split, SECA/FICA payroll taxes, the fees entered, and the net difference, under IRS Rev. Rul. 74-44. Computation only; not a recommendation to elect.

Behavior: Deterministic, idempotent calculation with zero external side effects. Splits net business profit into W-2 officer wages and Schedule K-1 shareholder distributions. Applies FICA to salary only (exempting distributions), accounts for employer-half FICA deduction, deducts annual CPA corporate filing and payroll processing fees, and computes the mathematical breakeven net profit threshold.

Usage Guidelines: Use when a US small business owner, single-member LLC, or high-earning freelancer is considering electing S-Corp status to reduce self-employment taxes. Do not use for retirement account contribution limits; use solo_401k_shield instead.

Input Schema

TableJSON Schema

Name	Required	Description
`netProfit`	Yes	Annual net business profit before owner compensation in USD ($/yr). Must be a positive number.
`as_of_date`	Yes	Civil date YYYY-MM-DD. Selects the rule pack in force on that date. Required: the engine will not assume a date.
`cpaAnnualFee`	No	Annual CPA accounting fee for corporate Form 1120-S preparation and filing in USD ($/yr).
`salaryPercent`	No	Officer W-2 reasonable compensation percentage of net profit (e.g. 50, 55, 60%). Must comply with IRS Rev. Rul. 74-44 industry benchmarks.
`stateAnnualFee`	No	Annual state franchise tax or corporate filing fee in USD ($/yr) (e.g. $800 in CA, $200 in DE).
`payrollAnnualFee`	No	Annual software and compliance fee for running compliant W-2 payroll in USD ($/yr) (e.g. Gusto, Rippling).

Output Schema

TableJSON Schema

Name	Required	Description	Default
`llc`	No
`scorp`	No
`savings`	No
`currency`	No
`overhead`	No
`netProfit`	No
`as_of_date`	No
`disclaimer`	No
`net_profit`	No
`minor_units`	No
`rate_pack_id`	No
`filing_status`	No
`wage_base_cap`	No
`effectiveTaxYear`	No
`statutoryWageBase`	No
`sole_prop_baseline`	No
`statutory_authority`	No

Schema Changelog

Changes observed during successful MCP inspections.

Changed1 schema field changedSep 27, 2026

changedOutput schema / (root)

Previous value: -nullNew value: +{
+  "additionalProperties": true,
+  "properties": {
+    "as_of_date": {
+      "type": [
+        "string",
+        "number",
+        "null"
+      ]
+    },
+    "currency": {
+      "type": [
+        "string",
+        "number",
+        "null"
+      ]
+    },
+    "disclaimer": {
+      "type": [
+        "string",
+        "number",
+        "null"
+      ]
+    },
+    "effectiveTaxYear": {
+      "type": [
+        "string",
+        "number",
+        "null"
+      ]
+    },
+    "filing_status": {
+      "type": [
+        "string",
+        "number",
+        "null"
+      ]
+    },
+    "llc": {
+      "type": [
+        "object",
+        "null"
+      ]
+    },
+    "minor_units": {
+      "type": [
+        "object",
+        "null"
+      ]
+    },
+    "netProfit": {
+      "type": [
+        "string",
+        "number",
+        "null"
+      ]
+    },
+    "net_profit": {
+      "type": [
+        "string",
+        "number",
+        "null"
+      ]
+    },
+    "overhead": {
+      "type": [
+        "object",
+        "null"
+      ]
+    },
+    "rate_pack_id": {
+      "type": [
+        "string",
+        "number",
+        "null"
+      ]
+    },
+    "savings": {
+      "type": [
+        "object",
+        "null"
+      ]
+    },
+    "scorp": {
+      "type": [
+        "object",
+        "null"
+      ]
+    },
+    "sole_prop_baseline": {
+      "type": [
+        "object",
+        "null"
+      ]
+    },
+    "statutoryWageBase": {
+      "type": [
+        "string",
+        "number",
+        "null"
+      ]
+    },
+    "statutory_authority": {
+      "type": [
+        "string",
+        "number",
+        "null"
+      ]
+    },
+    "wage_base_cap": {
+      "type": [
+        "string",
+        "number",
+        "null"
+      ]
+    }
+  },
+  "type": "object"
+}

Changed2 schema fields changedSep 26, 2026

addedInput schema / properties / as_of_date

Added value: +{
+  "description": "Civil date YYYY-MM-DD. Selects the rule pack in force on that date. Required: the engine will not assume a date.",
+  "example": "2026-09-26",
+  "pattern": "^\\d{4}-\\d{2}-\\d{2}$",
+  "type": "string"
+}

changedInput schema / required

Previous value: -[
-  "netProfit"
-]New value: +[
+  "netProfit",
+  "as_of_date"
+]

Changed1 schema field changedSep 24, 2026
- removedInput schema / properties / netProfit / default
```
Removed value: -150000
```

Changed5 schema fields changedSep 5, 2026

changedInput schema / properties / cpaAnnualFee / description

Previous value: -"Annual CPA corporate Form 1120-S filing fee ($/yr)"New value: +"Annual CPA accounting fee for corporate Form 1120-S preparation and filing in USD ($/yr)."

changedInput schema / properties / netProfit / description

Previous value: -"Annual net business profit in USD ($/yr)"New value: +"Annual net business profit before owner compensation in USD ($/yr). Must be a positive number."

changedInput schema / properties / payrollAnnualFee / description

Previous value: -"Annual payroll provider fee ($/yr)"New value: +"Annual software and compliance fee for running compliant W-2 payroll in USD ($/yr) (e.g. Gusto, Rippling)."

changedInput schema / properties / salaryPercent / description

Previous value: -"Reasonable salary percentage % (e.g. 50, 55, 60)"New value: +"Officer W-2 reasonable compensation percentage of net profit (e.g. 50, 55, 60%). Must comply with IRS Rev. Rul. 74-44 industry benchmarks."

changedInput schema / properties / stateAnnualFee / description

Previous value: -"Annual state franchise tax / report fee ($/yr)"New value: +"Annual state franchise tax or corporate filing fee in USD ($/yr) (e.g. $800 in CA, $200 in DE)."

First observedSep 5, 2026

TDQS

Score is being calculated.

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