Description: The calculation of Self-employment Tax was overstated by the amount of the tax on the dividend income from ISOs for an extremely limited set of cases. This error propagated through the subsequent tax calculations.

Affected scenarios: The only cases affected are those in which EACH of these conditions are met:

- The option holder is an employee
- The underlying stock paid dividends
- Option holders have ISO grants with exercised and unsold shares
- Option holder has self-employment income from outside sources recorded on the Assumptions sheet.

Impact: Minimal impact is expected. We estimate extremely few, if any, client cases will meet all of the above criteria. Within those, the calculation error overstated the self-employment tax by treating as self-employment income rather than wage income an amount representing dividends paid on exercised and unsold ISO shares. If wage income was above $84,900, the total error in this tax calculation would be 1.45% of the dividend income from ISOs. While this error is passed through the rest of the tax calculations, the effect of this error on any strategic decision is expected to be negligible.