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Social security tax payments not optional

Understand how Social Security tax payments work.

A: Discontinuing payment of Social Security on all income up to the Social Security wage base, and Medicare taxes on all earned income, never has been an option and has nothing to do with how much you've paid into the system in the past and whether your future benefits will increase.

You can take distributions on the S corporation profits, but this is contingent on your taking "reasonable" wages for the services you render.

Send your money management questions to medec@advanstar.com
. Answers to our readers' questions were provided by Medical Economics consultant David J. Schiller, JD, Schiller Law Associates, Norristown, Pennsylvania.

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