Self Employment Tax in Trenton, New Jersey

Find the right Self Employment Tax attorney in Trenton, NJ

Self Employment Tax Lawyers in Trenton

In Trenton, New Jersey, a few different taxes are imposed on employees, and subtracted from their gross pay during each pay period. The examples that most people are familiar with are the taxes imposed to fund Medicare and Social Security, which get their funding mostly from these relatively small pay deductions.

It's imperativel to be aware of one fact: if you're self-employed, you still have to pay these taxes. And it's your responsibility (or the responsibility of someone you hire for this purpose) to figure out precisely how much you owe.

Normally, the employer makes all the necessary calculations and deductions from a person's paycheck. If you are self-employed, however, you are required to make this determination, and to ensure that it's accurate.

Self-Employment tax obligations in Trenton, New Jersey

If you derive even a small percentage of your income from running your own business, or working as an independent contractor, you have to pay the "self-employment tax." This tax applies to everyone who makes more than per year from self-employment.

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, essentially doubling the amount of money that's contributed to these funds on the employee's behalf.

However, if you are self-employed in Trenton, New Jersey, you are responsible to pay both the employee and employer share of the employment tax. Essentially, this means that the employment tax for self-employed individuals is double what it would be for regular employees.

Self-employed workers in Trenton, New Jersey 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 essentially 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%.

Can a Trenton, New Jersey Tax Attorney Help?

If you work for yourself in Trenton, 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.

Anyone having difficulty with figuring out what they owe in self-employment taxes in Trenton, New Jersey should seek the assistance of a knowledgeable tax attorney. Most tax attorneys also have a good familiarity of accounting, so making this determination probably won't be too hard for them. And on top of that, a skilled tax attorney can give you objective and useful legal advice, which can help prevent more serious issues from rising in the future.

Talk to a Tax Law Attorney now!

Life in Trenton

Trenton is New Jersey's capital. It is seen as a part of the Greater New York Area by many. It is located in Hunterdon County.

Popular attractions include Cadwalader Park, Friends Burying Ground, the New Jersey State House, War Memorial Auditorium, The Trenton City Museum, Trenton Battle Monument, New Jersey State Library, New Jersey State Museum, Old Barracks, William Trent House, and Trenton City Hall.

Trenton is home to many attorneys who practice in law offices and firms. These attorneys focus on providing excellent legal services to their clients, who comprise of both residents and local businesses.

Famous past residents include Steve Braud, Betty Bronson, Al Downing, Greg Grant, Roxanne Hart, Roy Hinson, Gary Stills, Troy Vincent, and Ira W. Wood.

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