Self Employment Tax in Chapel Hill, North Carolina

Find the right Self Employment Tax attorney in Chapel Hill, NC

Self Employment Tax Lawyers in Chapel Hill

In Chapel Hill, North Carolina, a few different taxes are enforced on employees, and subtracted from their gross pay during each pay period. The examples that most people are acquainted with are the taxes imposed to fund Medicare and Social Security, which get their funding mostly from these relatively small pay deductions.

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

In most cases, employers make all the necessary calculations to determine how much needs to be deducted from an employee's check to pay these taxes. It's typically very simple, and any decent payroll software can automate this process. But the self-employed are liable for figuring this out for themselves, or hiring an accountant to do it.

Self-Employment tax obligations in Chapel Hill, North Carolina

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 .

For usual employees, Social Security and Medicare payments are made in equal parts by the employee and employer. This essentially means that every employee's contribution to his or her future Medicare and Social Security benefits is matched by the employer.

But, the self-employed in Chapel Hill, North Carolina are responsible for making the employer AND employee contributions to those programs, essentially doubling what they would have to pay if they were employed by someone else.

The total self-employment tax (note that this is totally distinct from the income tax) is set at 15.3%, if your income from self-employment in Chapel Hill, North Carolina exceeds . But, half of this tax is deducted from your income, for income tax purposes. Thus, this means that, at most, the self-employed only have to pay income on 92% of their total income, and that amount may be lowered with further deductions for which you may be eligible. This means that, essentially, the self-employment tax rate is only 14%, as opposed to 15.3%

Can a Chapel Hill, North Carolina Tax Attorney Help?

If you are self-employed in Chapel Hill, 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.

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 Chapel Hill, North Carolina, 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 significant 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 Chapel Hill

Chapel Hill is located in Orange County, North Carolina. Chapel Hill is well-known because it is home to the University of North Carolina. It is also known because it helps comprise the "Research Triangle," which includes Chapel Hill, Durham, and Raleigh.

Interestingly, Chapel Hill is nicknamed "America's Foodiest Small Town" by Bon Appetit Magazine. Some popular restaurants are A Southern Season, Foster's Markeet, Mama's Dip's, Crook's Corner, Sunrise Biscuit Kitchen, Caffee Driade, and The Lantern Restaurant. Many of these places have been recognized by Martha Stewart, Rachael Ray, and the Food Network!

Chapel Hill is also home to many attorneys who help keep the legal force strong. This, in turn, helps residnets and local businesses because all their legal matters will be handled appropriately.

Some famous residents of Chapel Hill include Chris Stamey, Dean Smith, Jack Hogan, John Grisham, Hubert Davis, Ash Bowie, and K.A. Applegate.

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