Self Employment Tax in Redondo Beach, California

Find the right Self Employment Tax attorney in Redondo Beach, CA

Self Employment Tax Lawyers in Redondo Beach

In Redondo Beach, California, there are certain taxes that are imposed on employees, which are deducted from their paychecks. The mostly 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 exactly how much you owe, to ensure that you don't pay more or less than you are required to.

Usually, it's the employer who makes all these calculations, and the employee doesn't have to think about it. Most larger employers have payroll departments to handle these matters, making it pretty simple for them. But, if you are self-employed, it's up to you to accurately determine what you have to pay in self-employment taxes

Self-Employment tax obligations in Redondo Beach, California

If you are an independent contractor, or run a sole proprietorship (a company which you own, and which is not incorporated as a separate legal entity), you must pay the so-called "self-employment tax" if your income from self-employment is greater than per year.

Workers who are employed by someone else enjoy at least one perk that the self-employed do not: their employer matches their Social Security and Medicare contributions, effectively doubling the amount of money that's contributed to these funds on the employee's behalf.

However, if you are self-employed in Redondo Beach, California, you are liable to pay both the employee and employer share of the employment tax. Effectively, this means that the employment tax for self-employed individuals is double what it would be for regular employees.

In Redondo Beach, California, self-employed business owners pay a self-employment tax rate of 15.3%. This is, of course, separate from, and additional to, whatever they pay in income tax. In an effort to partially offset this additional tax burden, half of what one pays in self-employment taxes can be deducted from their income when filing their income taxes. This means that the self employed pay income taxes on, at most, 92% of their income. And it's probably less, thanks to all the other deductions they might qualify for. This deduction lowers the effective self-employment tax rate to 14%, rather than the "official" rate of over 15%.

Can a Redondo Beach, California Tax Attorney Help?

If you're self-employed in Redondo Beach, you need to keep thorough records of all your income and expenses from the operation of your business. This will make it much easier for you to calculate your taxes when they come due, and it will make it easier for a tax attorney to give you good, useful advice, should you eventually need it.

So, if you have some trouble figuring out what you owe in self-employment taxes, for whatever reason, chances are good that a qualified tax attorney in Redondo Beach, California can help you with much trouble, and can provide you with good legal and financial advice, which can help you head off much more serious legal and financial issues.

Talk to a Tax Law Attorney now!

Life in Redondo Beach

Redondo Beach, California is a city in Los Angeles County. It is one of the three beach cities in Los Angles County. Its population is currently about 67,000 people.

Thanks to its highly desirable beachfront location, Redondo Beach, California has a fairly high cost of living, and its residents tend to be highly affluent. Many of these residents are successful professionals, such as attorneys.

The largest employer in Redondo Beach, California is Northrop Grumman, a very large player in the aerospace industry. This industry employs a large numbers of engineers and scientists, but high-tech companies also tend to employ a fairly significant number of lawyers, to handle things like trade secrets and employment law issues.

The lawyers of Redondo Beach, California are capable of handling sophisticated and complex cases, as well as ordinary legal issues that the average consumer is likely to face. If you need legal assistance, a Redondo Beach, California attorney can probably help.

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