Self Employment Tax in Salem, Oregon

Find the right Self Employment Tax attorney in Salem, OR

Self Employment Tax Lawyers in Salem

In the U.S., including in Salem, Oregon, taxes are enforced on employees, which are usually deducted from their paychecks. The ones that most people are acquainted with are the Medicare and Social Security taxes. The idea is that workers pay into these programs during their entire working lives, and then enjoy the benefits they provide once they retire.

Individuals who are self-employed are still liable for these taxes, and are responsible for figuring out how much they owe.

Most often, employers handle all of these calculations. With regular salaried and hourly employees, this is an easy procedure, and any decent payroll computer software can do it automatically. But, if you work for yourself, it is your responsibility to figure out exactly what you owe.

Self-Employment tax obligations in Salem, Oregon

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 everybody who makes more than per year from self-employment.

People 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 obtaining, on your behalf, twice as much money as what's deducted for your paycheck, with your employer covering the other half.

But, if you are self-employed in Salem, Oregon, 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 Salem, Oregon, 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 further 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 Salem, Oregon Tax Attorney Help?

If you're self-employed in Salem, 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 simpler for a tax attorney to give you good, useful advice, should you eventually need it.

With all that said, if you are having difficulty deciding just how much money you owe in Medicare and Social Security taxes from self-employment in Salem, Oregon, and keep good financial records, it should be relatively easy for a decent tax attorney to help you. And, if you end up facing a more serious legal issue over your self-employment tax liability, a tax attorney may prove to be invaluable.

Talk to a Tax Law Attorney now!

Life in Salem

Salem, Oregon is the capital of the state of Oregon, and the county seat of Marion County. It is located in the center of the scenic Willamette Valley, on the banks of the Willamette River. It is the third-largest city in the state of Oregon, with a population of 155,000.

Salem, OR was first settled by Europeans in 1812, where explorers established it as a trading post. In the 1840s, more permanent settlement came in the form of Christian missionaries. Shortly thereafter, Salem became the capital of the Oregon Territory, and continued to serve in this capacity when Oregon became a state in 1859.

Because it is the state capital, Salem, Oregon's economy is supported heavily by jobs created by the state government, which is the largest employer in Salem. In addition to employing all of the state elected officials in Oregon, from the governor down to state legislators, the government of Oregon, through its many agencies headquartered in Salem, employs a large number of administrative personnel, and other professionals. In particular, the state government employs many Salem, Oregon lawyers.

In Salem, there are also many lawyers in private practice. Salem, Oregon is home to Willamette University School of Law, which is part of the oldest university in the Western United States. Willamette University's law school has graduated hundreds of successful Salem, Oregon lawyers throughout its long history.

If you are facing a legal issue in Salem, Oregon and need assistance, it's highly likely that you'll be able to find a Salem, Oregon attorney who can help you.

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