Self Employment Tax in Long Beach, California
In Long Beach, 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 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 confirm that you don't pay more or less than you are obligated to.
Normally, it's the employer who does all the calculations, deciding 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 confirm that your figures are accurate.
Self-Employment tax obligations in Long Beach, California
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.
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 obtaining, on your behalf, twice as much money as what's deducted for your paycheck, with your employer covering the other half.
However, self-employed workers in Long Beach, California must make both the employee and employer contributions. Therefore, this means that the Medicare and Social Security tax liabilities apply doubly to the self-employed.
Currently, the self-employment tax rate in the United States is 15.30% of all income earned from self-employment in Long Beach, California. Nonetheless, 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%.
Find a Long Beach Lawyer that Specializes in Your Area of Need:
Can a Long Beach, California Tax Attorney Help?
Self-employed individuals in Long Beach 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.
If you have any difficulty calculating your self-employment tax liability, an accomplished Long Beach, California tax attorney would likely have very little trouble assisting you figure it out. A seasoned lawyer can also give you practical legal advice, which can help you avoid more significant tax law issues in the future, by dealing with them before they become problematic.
63 Tax Law cases posted to LegalMatch lawyers in Long Beach
Self-Employment Tax Attorneys in the Largest CA Cities
Life in Long BeachLong Beach, California is best known as "the LBC" by rap and pop music fans. Long Beach is actually the 7th largest city in California with just under 500,000 residents. Recently, Long Beach was named the "Aquatic Capital of the Nation" because the Port of Long Beach is one of the world's largest container ports and plays a substantial part in the global economy. The City of Long Beach is does not only revolve around the port. Many oil, aircraft, automobile, electronics, and home furnishings manufacturing plants are located in Long Beach. The city has seen an influx of new residents since the aerospace and other technology industries have begun to boom. In fact, Boeing produces DC-8s, DC-9s, DC-10s, MD-11s, C-17s, and the Boeing 717 all from their Long Beach production plants. Boeing is the second largest employer in Long Beach in front of California State University Long Beach and behind the Log Beach Unified School District.
Long Beach has obviously made production and transportation one of the cornerstones of the economy so you shouldn't be surprised to find the bevy of ports, busses, airports, freeways, highways and bike paths that have been masterfully incorporated into the city's design. Long Beach announced its vision to become the most bicycle friendly city and has really followed through. The city has identified traffic routes and destinations and created bike routes that are convenient and illustrated on the Long Beach City Bike Map for tourists and locals alike.