Self Employment Tax in Pittsfield, Massachusetts

Find the right Self Employment Tax attorney in Pittsfield, MA

Self Employment Tax Lawyers in Pittsfield

In Pittsfield, Massachusetts, 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.

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.

Normally, the employer makes all the necessary calculations and deductions from a person's paycheck. If you are self-employed, however, you are required to make this determination, and to ensure that it's accurate.

Self-Employment tax obligations in Pittsfield, Massachusetts

If you own a sole-proprietorship, or work primarily as an independent contractor, you need to pay the "self-employment tax" if you derive any substantial amount of income from self-employment. You must pay these taxes if your income from self-employment is more than annually.

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 are a self-employed business owner in Pittsfield, Massachusetts, you are liable 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 Pittsfield, Massachusetts. 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 Pittsfield, Massachusetts Tax Attorney Help?

Self-employed individuals in Pittsfield must ensure that they keep good, accurate 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 advise you with your legal tax concerns.

Thus, if you have some trouble figuring out what you owe in self-employment taxes, for whatever reason, chances are good that a knowledgeable tax attorney in Pittsfield, Massachusetts can advise you with much trouble, and can provide you with good legal and financial advice, which can help you head off much more significant legal and financial issues.

Talk to a Tax Law Attorney now!

Life in Pittsfield

Pittsfield is located in Berkshire County, Massachusetts. An interesting fact is that in 2005, Farmers Insurance ranked the city twentieth in the U.S. on the "Most Secure Place to Live" list. Forbest Magazine also ranked Pittsfield as number sixty-one in its list for "Best Small Places for Business."

Some known businesses in Pittsfield include Chemex Corporation, Blue-Q, SABIC, Laurin Publishing, Thaddeus Clapp House, General Dynamics Advanced Information Systems, and Berkshire Gas. Naturally, to support these businesses, Pittsfield is home to many attorneys who can easily handle the legal needs of businesses and residents.

Some famous residents include Thomas Allen, Silvio O. Conte, Cy Ferry, Tom Grieve, Stephanie Wilson and Robin Williams.

All in all, Pittsfield is a place that residents love to live in, and people love to visit!

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