Self Employment Tax in Hawaiian Gardens, California

Find the Right Lawyer Now

In Hawaiian Gardens, California, there are particular taxes that are imposed on employees, which are deducted from their paychecks. The generally 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 clearly how much you owe, to ensure that you don't pay more or less than you are obligated to.

Normally, it's the employer who does all the calculations, determining 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 ensure that your figures are accurate.

Self-Employment tax obligations in Hawaiian Gardens, California

If you primarily work as an independent contractor, or are the owner of a sole proprietorship, you have to pay what's commonly referred to as the "self-employment tax," if your annual income from self-employment is over $400.

Employees in a regular employer/employee relationship do enjoy one considerable perk that the self-employed do not: their Social Security and Medicare contributions are matched by their employers. So, if you pay $100 in Social Security and Medicare taxes with every paycheck, your employer has to match that. This basically doubles your contribution to these programs, without doubling their financial burden on you.

However, if you're self employed in Hawaiian Gardens, California, or anywhere else, you are obligated to make the employee AND employer contributions to Social Security and Medicare, basically doubling your employment tax liability.

Self-employed workers in Hawaiian Gardens, California pay a self-employment tax rate of 15.3% of their income that's derived from self-employment. However, half of whatever they end up paying in self-employment tax is deductible from income tax. This basically creates a tax deduction of nearly 8% of one's income, requiring you to only pay taxes on 92% of what you earn. Additional tax deductions may lower that number further. When this deduction is taken into account, the self-employment tax rate is effectively 14%, as opposed to over 15%.

Find a Hawaiian Gardens Lawyer that Specializes in Your Area of Need:

Can a Hawaiian Gardens, California Tax Attorney Help?

Self-employed individuals in Hawaiian Gardens must ensure that they keep good, complete financial records. This makes it much easier to determine what you owe, and, if you need a tax attorney, it makes it easier for them to assist you with your legal tax contentions.

Therefore, if you have some trouble figuring out what you owe in self-employment taxes, for whatever reason, chances are good that a reliable tax attorney in Hawaiian Gardens, California can assist you with much trouble, and can provide you with good legal and financial advice, which can help you head off much more severe legal and financial issues.

Self-Employment Tax Attorneys in the Largest CA Cities

Show California Cities

Self-Employment Tax Lawyers in Other California Cities and Towns


Find the Right Lawyer Now

Top Rated Lawyers

View attorney profiles and see how other LegalMatch users rate attorneys that may respond to your case.

Family Law Lawyer
LegalMatch Family Law Lawyer Shahid M.

Shahid M.

PLACER, CA

Family Law

Rating (2 users) *****
See Reviews
Family Law Lawyer
LegalMatch Family Law Lawyer Paul L.

Paul L.

WILL, IL

Family Law

Rating (7 users) *****
See Reviews
Wills, Trusts and Estates Lawyer
LegalMatch Wills, Trusts and Estates Lawyer Peter V.

Peter V.

Los Angeles West, CA

Wills, Trusts and Estates

Rating (1 users) *****
See Reviews
Family Law Lawyer
LegalMatch Family Law Lawyer Bruce W.

Bruce W.

BROWARD, FL

Family Law

Rating (9 users) ***
See Reviews

Need a Lawyer?

No obligation - Lawyers compete for your case. Choose your issue & get started now: