Self Employment Tax in Springdale, Arkansas

Find the Right Lawyer Now

In Springdale, Arkansas, there are particular taxes that are imposed on employees, which are deducted from their paychecks. The generally 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 important to note that if you are self-employed, you're still accountable for those taxes, and it's your responsibility to figure out what you owe.

In most cases, employers make all the necessary calculations to determine how much needs to be deducted from an employee's check to pay these taxes. It's normally very simple, and any decent payroll software can automate this process. But the self-employed are accountable for figuring this out for themselves, or hiring an accountant to do it.

Self-Employment tax obligations in Springdale, Arkansas

If you work as an independent contractor, or operate a sole proprietorship, you are deemed to be "self employed." You are required to pay the self-employment tax if your total income from self-employment exceeds $400 per year.

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

However, if you're self employed in Springdale, Arkansas, or anywhere else, you are obligated to make the employee AND employer contributions to Social Security and Medicare, basically doubling your employment tax liability.

The self-employment tax rate is 15.3% of all self-employment income, assuming your income from self-employment exceeds $400 per year in Springdale, Arkansas. But half of your self-employment tax liability can be deducted from your income tax. This results in a slightly lower income tax bill, which partially offsets this additional tax burden. It essentially means that the self-employment tax only applies to 92% of your income, as opposed to all of it. This means that your effective self-employment tax rate is about 14%, as opposed to over 15%.

Find a Springdale Lawyer that Specializes in Your Area of Need:

Can a Springdale, Arkansas Tax Attorney Help?

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

Therefore, if you have some trouble figuring out what you owe in self-employment taxes, for whatever reason, chances are good that a reliable tax attorney in Springdale, Arkansas can assist you with much trouble, and can provide you with good legal and financial advice, which can help you head off much more severe legal and financial issues.

5 Tax Law cases posted to LegalMatch lawyers in Springdale

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.

Los Angeles West, AR

Tax Law

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

Michael W.

Los Angeles West, AR

Tax Law

Rating (2 users) ***
See Reviews
Real Estate, Housing & Property Law Lawyer
LegalMatch Real Estate, Housing & Property Law Lawyer Bradley S.

Bradley S.

Suffolk, NY

Real Estate, Housing & Property Law

Rating (2 users) ****
See Reviews
Employment and Labor Law Lawyer
LegalMatch Employment and Labor Law Lawyer Graham H.

Graham H.

Santa Barbara, CA

Employment and Labor Law

Rating (10 users) *****
See Reviews

Need a Lawyer?

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