Self Employment Tax in Schenectady, New York

Find the right Self Employment Tax attorney in Schenectady, NY

Self Employment Tax Lawyers in Schenectady

In Schenectady, New York, 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.

But what if you're self-employed? You're still obliged to pay these taxes, since you will also be eligible for those retirement programs. It's also your responsibility to determine what your tax liability is.

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 Schenectady, New York

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 .

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

But, self-employed workers in Schenectady, New York must make both the employee and employer contributions. Thus, this means that the Medicare and Social Security tax liabilities apply doubly to the self-employed.

The total self-employment tax (note that this is completely distinct from the income tax) is set at 15.3%, if your income from self-employment in Schenectady, New York exceeds . However, 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 additional deductions for which you may be eligible. This means that, essentially, the self-employment tax rate is only 14%, as opposed to 15.3%

Can a Schenectady, New York Tax Attorney Help?

If you're self-employed in Schenectady, you need to keep accurate 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.

That said, if you are having trouble figuring out precisely how much self-employment tax you owe in Schenectady, New York, a competent tax attorney shouldn't have any trouble helping you on that front. Likewise, if you end up in a dispute with the government over your self-employment tax obligation, a good tax attorney can give you the best possible chance of getting a favorable result.

Talk to a Tax Law Attorney now!

Life in Schenectady

Schenectady, New York is a city in Schenectady County. It has a population of approximately 61,000 people, making it the ninth-largest city in New York State.

The name is a bit of a mouthful, and was derived from a Mohawk word that roughly translates to "near the pines" or "beyond the pines." It is part of the Albany Metropolitan Area.

The area was first settled by Europeans in 1661, as part of the Dutch colony of New Netherland, which comprised most of what is now the state of New York. In the 19th Century, Schenectady became an important transportation hub, connecting the Hudson River to the Great Lakes. In 1887, Thomas Edison moved Edison Machine Works to the city, and it then became the headquarters of General Electric, founded by Edison,which is now one of the largest companies in the world.

Modernly, Schenectady, New York is coming out of the hard economic times which many cities in Upstate New York endured throughout the second half of the 20th Century, but its economic outlook is improving.

If you live in Schenectady, New York and need an attorney, you probably won't have any problem finding the Schenectady, New York lawyer who is right for you.

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