Self Employment Tax in Plymouth, Massachusetts

Find the right Self Employment Tax attorney in Plymouth, MA

Self Employment Tax Lawyers in Plymouth

In Plymouth, Massachusetts, some taxes are placed 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 necessaryl 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 clearly how much you owe.

Usually, 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 Plymouth, 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 considerable 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 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 Plymouth, Massachusetts, you are accountable for both the employee and employer contributions to Medicare and Social Security. This basically doubles your self-employment tax rate.

The self-employment tax rate is 15.3% of all self-employment income, assuming your income from self-employment exceeds per year in Plymouth, Massachusetts. But half of your self-employment tax liability can be deducted from your income tax. This results in a slightly lower 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 Plymouth, Massachusetts Tax Attorney Help?

If you are self-employed in Plymouth, it's necessary that you keep good records of your income and expenses, because a tax attorney will only be able to assist you to the extent that you help yourself.

If you have any difficulty calculating your self-employment tax liability, an accomplished Plymouth, Massachusetts 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 severe tax law issues in the future, by dealing with them before they become problematic.

Talk to a Tax Law Attorney now!

Life in Plymouth

Plymouth is best known for being the location of the First Thanksgiving Feast and the capital of Plymouth colony, settled in 1620. It's wrought with Pilgrim history and is considered the oldest continuously inhabited English settlement. Plymouth was one of the country's first settlements and attracts tourists to destinations like Plymouth Rock. There's an influx of visitors during the Thanksgiving holiday, schools and families alike. Today, Plymouth is one of two Plymouth County seats and home to 59,000 residents. Jordan Hospital, a major regional medical center, is the largest employer in the city. Aside from tourism, Plymouth has seen a great boom in their research and telecommunications industries. Plymouth is also home to the only nuclear power plant in Massachusetts, the Pilgrim Nuclear Generating Station.

To accommodate the high number of tourists, there are lots of outstanding restaurants and accommodations. The lucky folks who get to move to Plymouth often seek out The Pinehills, a private residential development with two golf courses, a country club, and shopping village. For the children of residents, The Plymouth School System is the largest in Massachusetts with an enrollment of over 8,000 and the First Student Bus Company to provide transportation. Plymouth is host to many other convenient methods of transportation including rail, airport, highway, and ferry services to nearby municipalities. Plymouth is popular among professionals like lawyers. Plymouth lawyers are familiar with local courts and advising on a wide variety of legal matters. Many local lawyers are licensed to practice in a number of local New England states.

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