- 2,632
You changed what we are talking about you cant just compare fica.
The employer (YOU) will pay approx 4K to 5k in the employers portion of the tax
Then the employee (YOU) will pay your portion of taxes (as stated above)
Then YOU will pay self employment tax on the dividend. The dividends aren't free money.
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A lot has to do with how you take the dividends if taken incorrectly or even correctly you will get double taxed, take it as a salary and you are 1099 and pay self employment tax.
Again the IRS has leveled the playing field.
The employer (YOU) will pay approx 4K to 5k in the employers portion of the tax
Then the employee (YOU) will pay your portion of taxes (as stated above)
Then YOU will pay self employment tax on the dividend. The dividends aren't free money.
----------
A lot has to do with how you take the dividends if taken incorrectly or even correctly you will get double taxed, take it as a salary and you are 1099 and pay self employment tax.
Again the IRS has leveled the playing field.