Self Employment Tax in Santa Ana, California

Find the right Self Employment Tax attorney in Santa Ana, CA

Self Employment Tax Lawyers in Santa Ana

In Santa Ana, California, there are certain taxes that are levied on employees, which are deducted from their paychecks. The mostly 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 exactly how much you owe, to confirm that you don't pay more or less than you are required to.

Usually, it's the employer who makes all these calculations, and the employee doesn't have to think about it. Most larger employers have payroll departments to handle these matters, making it pretty simple for them. But, if you are self-employed, it's up to you to accurately determine what you have to pay in self-employment taxes

Self-Employment tax obligations in Santa Ana, California

If you are an independent contractor, or run a sole proprietorship (a company which you own, and which is not incorporated as a separate legal entity), you must pay the so-called "self-employment tax" if your income from self-employment is greater than per year.

Employees in a regular employer/employee relationship do enjoy one significant perk that the self-employed do not: their Social Security and Medicare contributions are matched by their employers. So, if you pay in Social Security and Medicare taxes with every paycheck, your employer has to match that. This effectively doubles your contribution to these programs, without doubling their financial burden on you.

But, if you're self employed in Santa Ana, California, or anywhere else, you are required to make the employee AND employer contributions to Social Security and Medicare, effectively doubling your employment tax liability.

Self-employed workers in Santa Ana, California pay a self-employment tax rate of 15.3% of their income that's derived from self-employment. But, half of whatever they end up paying in self-employment tax is deductible from income tax. This effectively creates a tax deduction of nearly 8% of one's income, requiring you to only pay taxes on 92% of what you earn. Further tax deductions may lower that number further. When this deduction is taken into account, the self-employment tax rate is effectively 14%, as opposed to over 15%.

Can a Santa Ana, California Tax Attorney Help?

If you work for yourself in Santa Ana, you have to stay on top of your self-employment taxes, to avoid facing serious legal and financial issues later on. This means you need to keep excellent records of all your income and expenses, in case you need to seek the advice of a tax attorney: the more information you can provide your lawyer, the better he or she can help you.

That said, if you are encountering trouble figuring out exactly how much self-employment tax you owe in Santa Ana, California, a competent tax attorney shouldn't have any trouble helping you on that front. Likewise, if you end up in a dispute with the government over your self-employment tax requirement, a good tax attorney can give you the best possible chance of getting a favorable result.

Talk to a Tax Law Attorney now!

Life in Santa Ana

Santa Ana is the county seat of the infamous Orange County, California. Santa Ana is the 4th most densely populated area in the United States with over 325,000 residents. Santa Ana is known nationally for it's beautiful coastline and it lends its name to the Santa Ana Freeway that bisects the city as well as the winds that historically fuel wildfires in Southern California, the Santa Ana Winds. One of the reasons people flock to Santa Ana is for work with Orange County at the Santa Ana Civic Center. Santa Ana has a high number of skilled lawyers because it's the location of the Orange County Supreme Court and the Ronald Reagan Federal Building and Courthouse.

Santa Ana's close proximity to Los Angeles attracts many corporate headquarters. Behr Paint, Corinthian Colleges, First American Corporation, and The Orange County Register all have their corporate headquarters in Santa Ana. Ingram Micro is the world's largest information technology distributor and outdoes all of the others as the top employer in Santa Ana besides Orange County. For those folks commuting out of the city by way of public transit, Amtrak's Pacific Surfliner runs through Los Angeles to San Diego. Santa Ana also has service from the Metrolink Orange County Line to Oceanside and the Inland Empire Line running to San Juan Capistrano and San Bernardino.

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