Self Employment Tax in Bell, California

Find the Right Lawyer Now

In Bell, California, 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.

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 typically very simple, and any decent payroll software can automate this process. But the self-employed are liable for figuring this out for themselves, or hiring an accountant to do it.

Self-Employment tax obligations in Bell, California

If you mainly work as an independent contractor, or are the owner of a sole proprietorship, you have to pay what's regularly referred to as the "self-employment tax," if your annual income from self-employment is over $400.

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.

But, the self-employed in Bell, California are responsible for making the employer AND employee contributions to those programs, essentially doubling what they would have to pay if they were employed by someone else.

The self-employment tax rate is 15.3% of all self-employment income, assuming your income from self-employment exceeds $400 per year in Bell, California. But half of your self-employment tax liability can be deducted from your income tax. This results in a slightly reduced 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 Bell Lawyer that Specializes in Your Area of Need:

Can a Bell, California Tax Attorney Help?

If you are self-employed in Bell, it's extremely important for you to be diligent in keeping records of your income and expenses, to ensure that you pay all the self-employment taxes that you owe (and also to make sure you don't over-pay). You may one day need a tax attorney to advise you with a legal issue, and they can help you far more efficiently if you are able to quickly present them with all the relevant information.

If you have any difficulty calculating your self-employment tax liability, an efficient Bell, California tax attorney would likely have very little trouble assisting you figure it out. A reliable lawyer can also give you practical legal advice, which can help you avoid more egregious tax law issues in the future, by dealing with them before they become problematic.

2 Tax Law cases posted to LegalMatch lawyers in Bell

Self-Employment Tax Attorneys in the Largest CA Cities

Show California Cities

Self-Employment Tax Lawyers in Other California 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 Andrew D.

Andrew D.

Tax Law

Rating (2 users) *****

 

See Reviews
Tax Law Lawyer
LegalMatch Tax Law Lawyer Greg G.

Greg G.

Tax Law

Rating (7 users) ****

 

See Reviews
Tax Law Lawyer
LegalMatch Tax Law Lawyer Simon M.

Simon M.

Tax Law

Rating (5 users) ****

 

See Reviews
Tax Law Lawyer
LegalMatch Tax Law Lawyer Karim H.

Karim H.

Tax Law

Rating (1 users) *****

 

See Reviews

Need a Lawyer?

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