Y10 worksheet · TY2026 defaults · every line editable

S-Corp vs. Wages (Schedule C)

Side-by-side trace with §199A modeled in full: wage limit, threshold phase-in, SSTB, TI cap, and the OBBBA minimum.

Schedule C — total cost

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S-corp — total cost (taxes + admin)

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Advantage

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Net profit before owner comp $ Reasonable salary (S-corp) $ Other household taxable income (non-wage) $

Filing status SSTB (specified service trade/business) State flat rate (MD ≈ 5.75% + local) % State allows §199A deduction UBIA — Schedule C $ UBIA — S-corp $

K-1 ordinary income is negative — salary plus payroll costs exceed profit. QBI base treated as $0.

Total cost vs. salary — watch QBI pull the curve

Assumptions & constants (TY2026 defaults)

FICA / SE

SE factor% OASDI wage base$ OASDI rate (SE)% Medicare rate (SE)% FICA OASDI each side% FICA Medicare each side% Addl Medicare rate% Addl Medicare threshold $

Employer add-ons & admin

FUTA rate% FUTA wage base$ SUTA (flat $ estimate)$ Payroll service / yr$ Extra admin (1120-S delta, SDAT)$

§199A

QBI rate% Threshold $ Phase-in range $ OBBBA minimum deduction$

Income tax

Standard deduction $

Brackets —