Self Employment Tax in Camarillo, California
In Camarillo, California, 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 extremely important to know that, if you are self-employed, you still have to pay those taxes, and it's also up to you to figure out clearly how much you owe, to ensure that you don't pay more or less than you are obligated to.
Normally, it's the employer who does all the calculations, determining what deductions need to be made from a worker's paycheck to cover his or her tax liability. But if you are your own boss, you have to do this, and ensure that your figures are accurate.
Self-Employment tax obligations in Camarillo, California
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 Camarillo, California, or anywhere else, you are obligated to make the employee AND employer contributions to Social Security and Medicare, basically doubling your employment tax liability.
Currently, the self-employment tax rate in the United States is 15.30% of all income earned from self-employment in Camarillo, California. However, half of your hypothetical self-employment tax liability can be deducted from your income. This means that you only pay self-employment tax on about 92% of your income, which creates an effective self-employment tax rate of just over 14%.
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Can a Camarillo, California Tax Attorney Help?
Self-employed individuals in Camarillo must ensure that they keep good, complete financial records. This makes it much easier to determine what you owe, and, if you need a tax attorney, it makes it easier for them to assist you with your legal tax contentions.
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 Camarillo, California 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.
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Life in CamarilloSituated in sunny Ventura County, Camarillo, California is a city of about 65,000 (based a 2006 estimate). Camarillo, California is named for two brothers of Spanish descent who lived in the area before the arrival of Anglo settlers, from the Eastern U.S. They, and other "Californios," helped preserve some of the region's Spanish heritage, in the face of the mostly English influence that settlers from other parts of the U.S. brought with them.
Humans have lived in the area for over 10,000 years, and Camarillo, California is home to some important archeological sites relating to these ancient inhabitants. Camarillo, California is generally considered a "bedroom community" - a largely residential urban area from which most of the residents commute to work.
Camarillo, California is considered very livable, where the weather is usually sunny, and the temperatures mild. Furthermore, Camarillo, California's crime rates are far lower than the national average, for all types of crime.
Camarillo, California is also home to California State University, Channel Islands. The region is home to several major industrial and biotechnology firms.
It should come as no surprise, then, that the consumers of Camarillo's legal services tend to be fairly sophisticated. This draws in lawyers who are good at handling complex cases. This means that a Camarillo, California lawyer can probably handle just about any legal issue an individual is likely to encounter.
Whatever your legal issue, it's a near certainty that there's a Camarillo, California lawyer who can help you solve it.