Originally Posted by
MSPeconomist
How is the profit sharing treated for social security and medicare payroll taxes? I realize that if salaries are high enough, this isn't an issue, but for those who don't reach the maximum for social security, for instance, would DL pay the employer portion as if it were a regular salary payment or must the employee pay the entire social security payroll tax amount as if this were self employment or international agency earnings?
It is treated exactly the same as any other earned income for payroll taxes.