Self Employment Tax in Howell, New Jersey

Find the right Self Employment Tax attorney in Howell, NJ

Self Employment Tax Lawyers in Howell

In Howell, New Jersey, 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.

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 Howell, New Jersey

If you are an independent contractor, or run a sole proprietorship (a company which you own, and which is not incorporated as a separate legal entity), you must pay the so-called "self-employment tax" if your income from self-employment is higher than 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 are self-employed in Howell, New Jersey, you are responsible to pay both the employee and employer share of the employment tax. Essentially, this means that the employment tax for self-employed individuals is double what it would be for regular employees.

Self-employed workers in Howell, New Jersey 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 Howell, New Jersey Tax Attorney Help?

If you are self-employed in Howell, it's extremely important for you to be diligent in keeping records of your income and expenses, to ensure that you pay all the self-employment taxes that you owe (and also to make sure you don't over-pay). You may one day need a tax attorney to advise you with a legal issue, and they can help you far more efficiently if you are able to quickly present them with all the relevant information.

That said, if you are encountering trouble figuring out precisely how much self-employment tax you owe in Howell, New Jersey, a competent tax attorney shouldn't have any trouble helping you on that front. Likewise, if you end up in a dispute with the government over your self-employment tax requirement, a good tax attorney can give you the best possible chance of getting a favorable result.

Talk to a Tax Law Attorney now!

Life in Howell

Howell, also known as Howell Township, is in Monmouth County, New Jersey. The area is known because it was pictured in the 2005 remake, War of the Worlds.

The most popular attraction in Howell is the Manasquan Reservoir. This area is great for nature lovers who want to take a hike, go fishing, bird watch, jog, bike, walk their dogs, or just exist in serenity with mother nature. The reservoir also has a nature exhibit where people can go see the local wildlife.

Famous residents include Bonnie Bernstein, Nick LaBrocca, Tom Pelphrey, Kal Penn, and Amy Polumbo.

Howell is also home to some attorneys who are competent and able to provide legal guidance to residents and local businesses.

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