Colleen, Rosemary, and Suzanne own a software development firm. Colleen owns 45% of the business, Rosemary 30%, and Suzanne 25%. The net operating income from the business is $220,000. Assume Suzanne is paid a salary of $45,000. For each of the following situations, determine who is responsible for paying the Social Security and self-employment taxes on the income from the business and who is allowed a deduction for the Social Security and self-employment taxes paid:

• The business is formed as a partnership. Suzanne's salary is not a guaranteed payment.
• The business is formed as a corporation.
• The business is formed as an S corporation.