Social Security taxes for mixed W2 & 1099 earners, how much do you pay?

[doctorette]

For 2021, the income subject to Social Security tax is $142,800.

Let's say you have a W2 part time job and earn that amount. You will pay 6.2% S.S. tax on it. Your employer will pay another 6.2%.

Let's say on top of that you have $100,000 in 1099 income. Since you already paid the max owed S.S. as an employee from your W-2 job, you owe no S.S. taxes on the employee side.

But what about as an employer? Do you still pay the 6.2% employer side of it? Or can you also get away with not doing that? According to the below posted article, you can avoid paying the employer amount if you are a sole proprietorship, but NOT if you are an s-corp:

Why an S Corp Doesn't Mix Well With a W-2 Job | White Coat Investor

If you own an S corp in addition to having a W2 job, you're probably getting hosed on social security taxes. Here are tax planning strategies to help.

www.whitecoatinvestor.com

Currently I am incorporated, so I brought this up to my accountant, and he told me that no matter what (scorp or sole prop) you must pay 6.2% employer SS tax up to $142,800 of your 1099 earnings. So my accountant disagrees with the article above.

What does everyone else think?

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[southerndoc]

I don't think you do. If Biden gets his way, you will have to pay on anything above $400,000 (i.e., SS taxes for 0-$142,800 and $400,000 plus). Eventually, inflation would eliminate the gap and you will pay SS tax on everything.