Self Employment Tax in Fordyce, Arkansas

Find the Right Lawyer Now

In Fordyce, Arkansas, there are specific taxes that are levied on employees, which are deducted from their paychecks. The typically 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 essential to note that if you are self-employed, you're still responsible for those taxes, and it's your responsibility to figure out what you owe.

Typically, 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 oversee 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 Fordyce, Arkansas

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 $400 per year from self-employment.

For usual employees, Social Security and Medicare payments are made in equal parts by the employee and employer. This essentially means that every employee's contribution to his or her future Medicare and Social Security benefits is matched by the employer.

But, if you're self employed in Fordyce, Arkansas, or anywhere else, you are obliged to make the employee AND employer contributions to Social Security and Medicare, essentially doubling your employment tax liability.

Self-employed workers in Fordyce, Arkansas pay a self-employment tax rate of 15.3% of their income that's derived from self-employment. But, 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. Further 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 Fordyce Lawyer that Specializes in Your Area of Need:

Can a Fordyce, Arkansas Tax Attorney Help?

If you are self-employed in Fordyce, it's imperative that you keep good records of your income and expenses, because a tax attorney will only be able to advise you to the extent that you help yourself.

Anyone having difficulty with figuring out what they owe in self-employment taxes in Fordyce, Arkansas should seek the assistance of a reliable 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 egregious issues from rising in the future.

Self-Employment Tax Attorneys in the Largest AR Cities

Show Arkansas Cities

Self-Employment Tax Lawyers in Other Arkansas 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.

Tax Law Lawyer
LegalMatch Tax Law Lawyer Tax Defense N.

Tax Defense N.

Ohio, AR

Tax Law

Rating (2 users) *****
See Reviews
Tax Law Lawyer
LegalMatch Tax Law Lawyer Michael W.

Michael W.

Ohio, AR

Tax Law

Rating (4 users) ****
See Reviews
Tax Law Lawyer
LegalMatch Tax Law Lawyer Jessica Z.

Jessica Z.

Sauk, WI

Tax Law

Rating (1 users) *****
See Reviews
Family Law Lawyer
LegalMatch Family Law Lawyer James C.

James C.

Carroll, MD

Family Law

Rating (2 users) *****
See Reviews

Need a Lawyer?

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