Self Employment Tax in Castro Valley, California

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In Castro Valley, California, there are specific taxes that are levied on employees, which are deducted from their paychecks. The typically well-known employment taxes are the Medicare and Social Security tax, for which a small percentage of every employee's paycheck is deducted.

It's extremely important to know that, if you are self-employed, you still have to pay those taxes, and it's also up to you to figure out precisely how much you owe, to confirm that you don't pay more or less than you are obliged to.

Typically, it's the employer who does all the calculations, deciding what deductions need to be made from a worker's paycheck to cover his or her tax liability. But if you are your own boss, you have to do this, and confirm that your figures are accurate.

Self-Employment tax obligations in Castro Valley, California

If you work as an independent contractor, or operate a sole proprietorship, you are deemed to be "self employed." You are obliged to pay the self-employment tax if your total income from self-employment exceeds $400 per year.

Persons who are not self-employed, and work for another person or company, have their contributions to Medicare and Social Security matched by their employers. This means that these programs are receiving, on your behalf, twice as much money as what's deducted for your paycheck, with your employer covering the other half.

But, the self-employed in Castro Valley, California are responsible for making the employer AND employee contributions to those programs, essentially doubling what they would have to pay if they were employed by someone else.

The total self-employment tax (note that this is totally distinct from the income tax) is set at 15.3%, if your income from self-employment in Castro Valley, California exceeds $400. But, half of this tax is deducted from your income, for income tax purposes. Thus, this means that, at most, the self-employed only have to pay income on 92% of their total income, and that amount may be lowered with further deductions for which you may be eligible. This means that, essentially, the self-employment tax rate is only 14%, as opposed to 15.3%

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Can a Castro Valley, California Tax Attorney Help?

If you work for yourself in Castro Valley, you have to stay on top of your self-employment taxes, to avoid facing significant legal and financial issues later on. This means you need to keep reliable records of all your income and expenses, in case you need to seek the advice of a tax attorney: the more information you can provide your lawyer, the better he or she can help you.

If you have any difficulty calculating your self-employment tax liability, an efficient Castro Valley, California tax attorney would likely have very little trouble assisting you figure it out. A reliable lawyer can also give you practical legal advice, which can help you avoid more egregious tax law issues in the future, by dealing with them before they become problematic.

10 Tax Law cases posted to LegalMatch lawyers in Castro Valley

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Life in Castro Valley

Castro Valley, California is situated in Alameda County in the Bay Area.  With its population of over 61,000, it is one of the largest unincorporated areas in the entire state.  The economy of Castro Valley had its early foundations in chicken ranching, with several industry innovators in the city.  Today Castro Valley is favored as a commuter town due to its proximity to metropolitan areas like San Francisco and San Jose.

Castro Valley Boulevard is the hub of economic and social activity in the city.  The area contains many old-style boutique shops and diners, as well as modern establishments.  Castro Valley is also well known for its florist shops, where patrons can purchase unique floral arrangements.  Much of the city is comprised of hilly areas like Palomares Hills Park, which offers a breathtaking view of the city.

Popular attractions in Castro Valley, California include bowling at Castro Valley Bowl, miniature golfing at Golden Tee, and activities at the Castro Valley Community Center.  Castro Valley hosts city events like the Fall Festival, the Classic Car Show, and a Rodeo Parade which has featured dancing horses.  The Adobe Art Center also offers instructional courses and showcases art exhibits from local talent.

Lawyers in Castro Valley, California represent clients in many types of legal matters and issues.  Many Castro Valley cases are filed at the Superior Court of California, County of Alameda located near the city.  Many Castro Valley attorneys actively contribute to the community through local groups and civic organizations.

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