OpenChainGraph Suite · ART-713

S-Corp Election Break-Even Modeler

Compares the sole-proprietor SE tax against the S-Corp payroll tax on a reasonable W-2 salary, nets the annual admin cost, and finds the income at which electing S-Corp status starts to pay, and shows the QBI §199A trade-off the payroll saving has to beat.

S-Corp vs Sole Prop2026 FiguresQBI §199A Trade-offZero PIIClient-side only

🔒 All inputs are processed locally in your browser. No data is transmitted. Do not enter real personal data; use synthetic or anonymised inputs only.

Scope & reliance

Deterministic 2026 model, not tax advice. SS wage base $184,500 (IRS Pub 15, 2026): the 12.4% Social Security leg caps at the base on both sides and the 2.9% Medicare leg continues uncapped above it. The 92.35% SE factor applies to net earnings from self-employment only (IRS Topic 554), never to W-2 wages. This port corrects ApexLogics #111 on exactly that point: the source applies 0.9235 to the salary, while the S-Corp side here is full-wage FICA, intentionally higher by 7.65% of the wage. The 0.9% Additional Medicare Tax above $200K single / $250K MFJ is not modeled and sits outside the estimate. Filing status and the owner health premium are accepted and echoed but excluded from the tax arithmetic (preserved source behavior, marked DIFFERS D1/D2). Break-even is the first point of a 500-step grid from $30,000, within one step of the continuous break-even. Admin cost carries a ~$1,500–$3,000/yr typical band; values outside it are honored and flagged. No formal correctness proof exists for this node yet (compute_proof_ready: deferred); see the proof-status note below the results.

Inputs

Edit any field and run. Defaults mirror the Apex #111 page defaults.

net_se_income

reasonable_salary_pct

annual_admin_cost

owner_health_premium_annual

filing_status

Result

Proof status

This node ships compute_proof_ready: deferred. No formal correctness proof has been produced for this kernel; the result above is a deterministic recompute, verified by a property-test floor, not a proven one.

Execution Hash & §4 Artifact

SHA-256 execution hash (JCS canonical, RFC 8785):

Run the AINumbers MCP tool `model_scorp_break_even`. Task: Model the S-Corp election break-even: sole-prop SE tax vs S-Corp payroll tax on a reasonable W-2 salary share, net of annual admin cost, with the grid break-even income and a QBI section 199A trade-off (payroll-tax saved vs the 20% deduction value lost on wages paid). Call it with arguments: {"policy_parameters":{"net_se_income":150000,"reasonable_salary_pct":50,"annual_admin_cost":3000,"owner_health_premium_annual":0,"filing_status":"single"}} Verify before trusting: call `verify_execution_hash` on mcp.ainumbers.co (https://mcp.ainumbers.co/mcp) with the parameter `claimed_hash` set to the returned `execution_hash`, passing the full artifact the run returned (the object containing `policy_parameters` + `output_payload` + `execution_hash`; equivalently `policy_parameters` + `output_payload` with `claimed_hash`), not the bare hash string, or re-run the in-page WebMCP tool `model_scorp_break_even`. Return the ledger link https://ledger.ainumbers.co/ so a human can re-verify without contacting us. PII rule: All inputs are processed locally in your browser. No data is transmitted. Do not enter real personal data — use synthetic or anonymised inputs only. Open the tool with the sample prefilled: https://ainumbers.co/chaingraph/art-713-scorp-election-break-even.html#p=v1.H4sIAAAAAAAA_wGFAHr_eyJuZXRfc2VfaW5jb21lIjoxNTAwMDAsInJlYXNvbmFibGVfc2FsYXJ5X3BjdCI6NTAsImFubnVhbF9hZG1pbl9jb3N0IjozMDAwLCJvd25lcl9oZWFsdGhfcHJlbWl1bV9hbm51YWwiOjAsImZpbGluZ19zdGF0dXMiOiJzaW5nbGUifY3aSaOFAAAA

S-Corp Election Break-Even Modeler

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