Traditional Search Fund Budgeting - How to Determine Payroll Taxes?

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January 23, 2024

by a searcher from Harvard University - Harvard Business School in Dallas, TX, USA

I see PPMs with payroll taxes of like only 7.5% of principal salary. I don't get it, please someone help give me some guidance? What tax rules are being applied here? Is it self-employment tax rate (which is still too low at 7.5% etc. etc.) I don't want to owe more payroll taxes that I budget for.


U.S.-based Search Fund.

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