Self Employment Tax in Joliet, Illinois

Find the right Self Employment Tax attorney in Joliet, IL

Self Employment Tax Lawyers in Joliet

In Joliet, Illinois, some taxes are imposed on employees, and deducted from their paychecks. Most people are aware of the Medicare and Social Security taxes - which fund those two programs by taking a small percentage of every paycheck an employee receives.

Individuals who are self-employed are still accountable for these taxes, and are responsible for figuring out how much they owe.

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

Self-Employment tax obligations in Joliet, Illinois

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 larger than per year.

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

But, if you are a self-employed business owner in Joliet, Illinois, you are accountable for both the employee and employer contributions to Medicare and Social Security. This basically doubles your self-employment tax rate.

Currently, the self-employment tax rate in the United States is 15.30% of all income earned from self-employment in Joliet, Illinois. 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%.

Can a Joliet, Illinois Tax Attorney Help?

If you work for yourself in Joliet, you have to stay on top of your self-employment taxes, to avoid facing severe legal and financial issues later on. This means you need to keep superb 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.

If you have any difficulty calculating your self-employment tax liability, an accomplished Joliet, Illinois tax attorney would probably have very little trouble helping you figure it out. A brilliant lawyer can also give you practical legal advice, which can help you avoid more serious tax law issues in the future, by dealing with them before they become problematic.

Talk to a Tax Law Attorney now!

Life in Joliet

Joliet, Illinois is the fastest growing city in the state. It is the seat of Will County and was incorporated as early as 1852. Joliet is nicknamed "The City of Champions" on account of the many national and state titles won by local school bands and sports teams. It is also nicknamed "The City of Steel" as well as the "City of Stone", reflecting its historical background in those industries.

Currently the city of Joliet, Illinois has attracted large numbers of new residents seeking to work and live in the area. Family entertainment in Joliet is abundant, consisting of several golf courses, bike trails, and old-style movie theaters. The city also has several landmarks that often appear in the setting of major motion picture films, such as the Rialto Square Theater.

Every year Joliet enjoys a large influx of visitors who come to the city to watch NASCAR automobile races and to participate in high-end motorsports events. These are hosted at places like the Chicagoland Speedway and the Autobahn Country Club.

Joliet, Illinois has quickly become an important hub for commerce and residential living. Lawyers in Joliet are available to assist in many different areas of law. Joliet, Illinois lawyers hone their professional skills through state and county bar associations.

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