Self Employment Tax in St. Cloud, Minnesota

Find the right Self Employment Tax attorney in St. Cloud, MN

Self Employment Tax Lawyers in St. Cloud

In St. Cloud, Minnesota, 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 obliged 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, it's the employer who makes all these calculations, and the employee doesn't have to think about it. Most larger employers have payroll departments to oversee these matters, making it pretty simple for them. But, if you are self-employed, it's up to you to accurately determine what you have to pay in self-employment taxes

Self-Employment tax obligations in St. Cloud, Minnesota

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 St. Cloud, Minnesota, or anywhere else, you are obliged to make the employee AND employer contributions to Social Security and Medicare, essentially doubling your employment tax liability.

Self-employed workers in St. Cloud, Minnesota 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 essentially 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 St. Cloud, Minnesota Tax Attorney Help?

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

Anyone having difficulty with figuring out what they owe in self-employment taxes in St. Cloud, Minnesota 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 significant issues from rising in the future.

Talk to a Tax Law Attorney now!

Life in St. Cloud

With close to 70,000 residents, Saint Cloud, Minnesota is the largest city in Minnesota's central region. Saint Cloud is named after St. Cloud, France and has some charming French restaurants and culture paying homage to its namesake. Located on the banks of the Mississippi River, the picturesque city has a lot to offer residents and visitors. St. Cloud is just over an hour drive from Minneapolis and St. Paul, and an easy city to access from all around. St. Cloud islocated in three counties: Stearns County, Benton County, and Sherburne County and is also considered one of the fastest growing cities in the state of Minnesota. Comprising a total area of 30.9 miles, St. Cloud has over ninety parks within its city limits. St. Cloud also has thirty undeveloped small islands, which make for popular canoe and kayak adventures. As a city on the rise, it is no wonder that there is such a wonderful lawyer community in St. Cloud. St. Cloud lawyers are highly skilled in a range of practice areas, and available to help their neighbor with any issue he or she may be dealing with. The legal community in St. Cloud is growing as fast as the city itself, and it is a great time to use this resource!

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