Self Employment Tax in Miami, Florida

Find the right Self Employment Tax attorney in Miami, FL

Self Employment Tax Lawyers in Miami

In Miami, Florida, 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 imperativel to be aware of one fact: if you're self-employed, you still have to pay these taxes. And it's your responsibility (or the responsibility of someone you hire for this purpose) to figure out precisely how much you owe.

Most frequently, employers handle all of these calculations. With regular salaried and hourly employees, this is an easy procedure, and any decent payroll computer software can do it automatically. But, if you work for yourself, it is your responsibility to figure out precisely what you owe.

Self-Employment tax obligations in Miami, Florida

If you work as an independent contractor, or operate a sole proprietorship, you are deemed to be "self employed." You are obliged to pay the self-employment tax if your total income from self-employment exceeds per year.

Employees in a regular employer/employee relationship do enjoy one substantial 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 essentially doubles your contribution to these programs, without doubling their financial burden on you.

But, if you're self employed in Miami, Florida, or anywhere else, you are obliged to make the employee AND employer contributions to Social Security and Medicare, essentially doubling your employment tax liability.

The self-employment tax rate is 15.3% of all self-employment income, assuming your income from self-employment exceeds per year in Miami, Florida. 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%.

Can a Miami, Florida Tax Attorney Help?

If you're self-employed in Miami, you need to keep accurate 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 Miami, Florida should seek the assistance of a reliable tax attorney. Most tax attorneys also have a good familiarity of accounting, so making this determination probably won't be too hard for them. And on top of that, a skilled tax attorney can give you objective and useful legal advice, which can help prevent more egregious issues from rising in the future.

Talk to a Tax Law Attorney now!

Life in Miami

Miami is the seat of Miami-Dade County and the city with the 9th largest population in the entire United States with over 2.5 million Florida residents. In addition to the massive population, Miami is one of the most popular tourist destinations. It's the United States' 5th richest city and was voted "America's Cleanest City" by Forbes Magazine. The Port of Miami is the number one cruise passenger port on the globe earning Miami the title of "Cruise Capital of the World." Miami does not disappoint with attractions. The Adrienne Arsht Center for the Performing Arts ranks just behind New York's Lincoln Center for the largest performing arts center in the entire United States and hosts world renown operas, ballets, concerts, musicals, and plays.

You shouldn't be surprised to find that the City of Miami attracts so many performance artists like musicians, singers, actors, and dancers. You may also know Miami for it's notoriety as a modeling capital with world renown agencies and events like Mercedes-Benz Fashion Week Miami, an annual event. The Art Basel Miami Beach is an annual art exhibition of contemporary pieces that's known worldwide as "the Olympics of Art" for its size and diverse attendance.

Miami is a city that thrives off f business from tourists. The Cuban immigrants introduced conga, Dominicans brought meringue, Brazilians come with samba, and the Caribbean reggae have blended into a diverse and exciting music scene. The front line of cutting edge music can be heard by famous DJs like DJ Khaled, DJ Laz, and Pitbull. Miami clubs are famous in tv and film.

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