Self Employment Tax in Belmont, California

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In Belmont, California, there are particular taxes that are enforced 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 critical 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 Belmont, California

If you mainly work as an independent contractor, or are the owner of a sole proprietorship, you have to pay what's usually 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, basically doubling the amount of money that's contributed to these funds on the employee's behalf.

But, the self-employed in Belmont, California are responsible for making the employer AND employee contributions to those programs, basically 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 Belmont, 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%.

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Can a Belmont, California Tax Attorney Help?

If you're self-employed in Belmont, you need to keep complete 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.

Anyone having difficulty with figuring out what they owe in self-employment taxes in Belmont, California should seek the help of a seasoned tax attorney. Most tax attorneys also have a good understanding of accounting, so making this determination probably won't be too hard for them. And on top of that, a qualified tax attorney can give you objective and useful legal advice, which can help prevent more significant issues from forming in the future.

5 Tax Law cases posted to LegalMatch lawyers in Belmont

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Life in Belmont

Belmont, California is a city in San Mateo County, in the southern portion of the San Francisco Bay Area. It currently has a population of about 25,000 people.

Belmont is known for having one of the most restrictive set of anti-smoking laws in the U.S. In Belmont, smoking is prohibited in all public parks, all workplaces, and all multistory apartment buildings. The law largely owes its existence to lobbying by a group of retirees who were concerned over the health effects of secondhand smoke drifting into their retirement community from outside. While the law is not particularly popular among smokers, non-smokers and public health organizations are overwhelmingly in favor of it.

Because this law imposes new regulations on landlords and business-owners, the lawyers of Belmont, California sometimes have to advise those parties about complying with the law, providing them with a good amount of business.

So, if you live in Belmont, California and are in need of a lawyer, you're in luck. There are plenty of successful and experienced Belmont, California attorneys who can help you with almost any legal issue.

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