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

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

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

A4.4/5.0

Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already declare readOnlyHint, idempotentHint, openWorldHint=false and destructiveHint=false, and the 'deterministic, idempotent, zero side effects' line largely restates them. However, the description discloses genuine computation semantics beyond the annotations: profit is split into W-2 wages and K-1 distributions, FICA applies to salary only, the employer-half FICA deduction is modeled, fees are deducted, and a breakeven threshold is computed.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness4/5

Is the description appropriately sized, front-loaded, and free of redundancy?

Front-loaded purpose, then clearly labeled Behavior and Usage Guidelines sections, so an agent can skim. It is slightly over-long and the opening behavior sentence duplicates annotation flags rather than adding new information, which costs it the top mark.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness5/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

For a 6-parameter, deterministic calculator with an output schema already covering return values, the description supplies everything an agent needs: what is modeled, the accounting method (FICA on salary, employer-half deduction, fee netting), the regulatory basis, and the advisory boundary. No obvious gap remains.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters3/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema description coverage is 100% and the schema descriptions already explain netProfit, as_of_date's rule-pack role, and Rev. Rul. 74-44 compliance for salaryPercent, so the baseline is 3. The description adds only marginal framing (the W-2/K-1 split that salaryPercent controls) and no format, range, or interaction detail the schema lacks.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

States a specific verb (compute) and resource (employment taxes with and without an S-corp election), enumerates the outputs (salary split, SECA/FICA, fees, net difference) and cites the governing authority (Rev. Rul. 74-44). The closing 'Computation only; not a recommendation to elect' sets a scope boundary an agent could otherwise get wrong, and the sibling name-check makes it distinguishable from the ~29 other finance tools.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines5/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

Provides an explicit use-when trigger (US small business owner, single-member LLC, or high-earning freelancer considering an S-corp election) plus an explicit do-not-use-with-alternative routing ('not for retirement account contribution limits; use solo_401k_shield instead'). Nothing is left to inference.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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