FAQ 564: Budget--Sole prop budget is not calculating the owner's Social Security amount

Problem: In the attached plan it does not appear that the Social Security Tax is being calculated to determine the compensation for the owner. Also attached is the Sole Proprietorship Budget Worksheet generated after running the budget showing the social security figure as zero.

Solution: It appears that the owner's compensation is listed as both Schedule C and as W-2 income, so the system thinks that the social security is being satisfied by the W-2 amount. If the owner only has Schedule C income, zero out the W-2 compensation amount before running the budget. If you want it included in the budget calculation, include it in the Budget Amount on the setup screen, but remember that the system will use W-2 comp first for social security purposes.