Self Employment Tax in Warren, Michigan

Find the right Self Employment Tax attorney in Warren, MI

Self Employment Tax Lawyers in Warren

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

But what if you're self-employed? You're still required to pay these taxes, since you will also be qualified for those retirement programs. It's also your responsibility to determine what your tax liability is.

Typically, 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 Warren, Michigan

If you mainly work as an independent contractor, or are the owner of a sole proprietorship, you have to pay what's usually referred to as the "self-employment tax," if your annual income from self-employment is over .

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 Warren, Michigan, 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 Warren, Michigan 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 Warren, Michigan Tax Attorney Help?

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

With all that said, if you are having difficulty deciding just how much money you owe in Medicare and Social Security taxes from self-employment in Warren, Michigan, and keep good financial records, it should be relatively easy for a decent tax attorney to help you. And, if you end up facing a more serious legal issue over your self-employment tax liability, a tax attorney may prove to be invaluable.

Talk to a Tax Law Attorney now!

Life in Warren

Warren, Michigan is the largest city in Macomb County. With a population of 135,000, it is the largest city in the county and the third largest in the state of Michigan. Many large businesses and corporations have their home in Warren, Michigan, including Big Boy Restaurants International, General Motors Technical Center, and the U.S. Army Detroit Arsenal. Due to the many business and employment opportunities in the city, Warren has a separate Community and Economic Development Department to monitor the city's progress.

In addition to its many economic opportunities, Warren, Michigan also supports an active recreation department. The city maintains a total of 24 parks and holds several outdoor concerts every year. Also, the Owen Jax Recreation center in Warren is a large multipurpose facility for sports activities, teen events, and senior games. Many residents enjoy the local activities held there throughout the seasons. The Warren Community Center also holds similar events and activities.

Warren, Michigan is also home to a number of historical sites and markers. In particular, Village of Warren, Detroit Arsenal Tank Plant, and General Motors Technical Center are favorite destinations for residents and tourists alike.

Lawyers in Warren, Michigan provide the community with legal services in a wide variety of areas. They are available to assist persons by giving legal advice, providing representation in court, and other similar tasks. Many Warren, Michigan lawyers are active members of legal and civic organizations such as the Macomb County Bar Association.

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