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Unformatted text preview: 7:07:29 PM PST Total views: 12 Your views: 3 Previous Post Show Parent Post This is not an issue that will be tested in this class. First of all, the final regulations that you are referring to do not change the tax treatment of the sole proprietor. The owner of an SMLLC (disregarded entity) must pay self-employment (SE) tax on the income of the SMLLC, unless that income is otherwise exempt from SE tax (such as dividend income, interest income and rental income). The final regulations cause the SMLLC to be treated as a separate entity for purposes of the payroll taxes on the employees (not the owner of the SMLLC). The SMLLC is treated like a corporate employer for payroll tax purposes--just like any other corporation. For FICA, the employer pays half and the employee pays half. With FUTA, the employer pays it all....
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- Spring '09