A couple of year ago I moved from solo practice with an S corp MDPA to W2 employee with a hospital system
Base annual salary is a little over 300K; with productivity bonuses, I estimate another 50 to 100 k; I have the option of taking upto 49% of my compensation on a 1099, something I have not exercised due the fact that I would be responsible for the self employment tax on the 1099 income.
The advantage of taking a portion of my income on a 1099 would be
1) ability to deduct more business/profession related expenses
2) ability to form and contribute to a solo 401k
Since I would already be paying the max social security tax on the W2 income, would I have to also make soc sec tax payments on the 1099 income and would this be refundable as an overpayment? ( I understand I would be still liable for the medicare tax which has no income ceiling)
Base annual salary is a little over 300K; with productivity bonuses, I estimate another 50 to 100 k; I have the option of taking upto 49% of my compensation on a 1099, something I have not exercised due the fact that I would be responsible for the self employment tax on the 1099 income.
The advantage of taking a portion of my income on a 1099 would be
1) ability to deduct more business/profession related expenses
2) ability to form and contribute to a solo 401k
Since I would already be paying the max social security tax on the W2 income, would I have to also make soc sec tax payments on the 1099 income and would this be refundable as an overpayment? ( I understand I would be still liable for the medicare tax which has no income ceiling)
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