Self Employment Tax in Wayne, New Jersey

Find the right Self Employment Tax attorney in Wayne, NJ

Self Employment Tax Lawyers in Wayne

In Wayne, New Jersey, a few different taxes are placed on employees, and subtracted from their gross pay during each pay period. The examples that most people are familiar 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 Wayne, New Jersey

If you derive even a small percentage of your income from running your own business, or working as an independent contractor, you have to pay the "self-employment tax." This tax applies to everyone who makes more than per year from self-employment.

Workers who are employed by someone else enjoy at least one perk that the self-employed do not: their employer matches their Social Security and Medicare contributions, essentially doubling the amount of money that's contributed to these funds on the employee's behalf.

But, self-employed workers in Wayne, New Jersey must make both the employee and employer contributions. Thus, this means that the Medicare and Social Security tax liabilities apply doubly to the self-employed.

In Wayne, New Jersey, self-employed business owners pay a self-employment tax rate of 15.3%. This is, of course, separate from, and additional to, whatever they pay in income tax. In an effort to partially offset this additional tax burden, half of what one pays in self-employment taxes can be deducted from their income when filing their income taxes. This means that the self employed pay income taxes on, at most, 92% of their income. And it's probably less, thanks to all the other deductions they might qualify for. This deduction lowers the effective self-employment tax rate to 14%, rather than the "official" rate of over 15%.

Can a Wayne, New Jersey Tax Attorney Help?

If you are self-employed in Wayne, 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.

Thus, if you have some trouble figuring out what you owe in self-employment taxes, for whatever reason, chances are good that a knowledgeable tax attorney in Wayne, New Jersey can advise you with much trouble, and can provide you with good legal and financial advice, which can help you head off much more significant legal and financial issues.

Talk to a Tax Law Attorney now!

Life in Wayne

Wayne New Jersey is a beautiful Garden State city located just fifteen miles from midtown Manhattan -- making it a perfect city for the city worker to live in. With a population of over 55,000, it looks like many people may be doing just that! The city of Wayne has also been listed on the Top 100 places to live. Wayne is home to the Toys "R" Us corporate headquarters as well as the Valley National Bank headquarters. The city also houses the Ice Vault rink where many Olympians can be seen practicing on a regular basis. Wayne is home to a wide variety of activities for their residents to enjoy, including: recreational facilities, lake communities, a state university, and several parks.

Wayne is also a popular location for many lawyers to set up their practice. Specializing in a range of skills, Wayne lawyers are some of the top in the business and ready to help serve their client in whatever capacity he or she is needed! Wayne lawyers are just one more aspect that makes this city such a wonderful place to live in!

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