Self Employment Tax in Bristol, Rhode Island

Find the right Self Employment Tax attorney in Bristol, RI

Self Employment Tax Lawyers in Bristol

In the U.S., including in Bristol, Rhode Island, taxes are placed on employees, which are typically deducted from their paychecks. The ones that most people are familiar with are the Medicare and Social Security taxes. The idea is that workers pay into these programs during their entire working lives, and then enjoy the benefits they provide once they retire.

It's crucial to note that if you are self-employed, you're still responsible for those taxes, and it's your responsibility to figure out what you 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 Bristol, Rhode Island

If you own a sole-proprietorship, or work primarily as an independent contractor, you need to pay the "self-employment tax" if you derive any substantial amount of income from self-employment. You must pay these taxes if your income from self-employment is more than annually.

For people who are employed by another person or company, the employer typically matches the employee's contributions to Medicare and Social Security. This essentially means that, when you look at your Medicare and Social Security tax statements on your paychecks, you can know that those programs are actually getting double what's shown there - with your employer covering the other half.

But, if you are a self-employed business owner in Bristol, Rhode Island, you are liable for both the employee and employer contributions to Medicare and Social Security. This basically doubles your self-employment tax rate.

In Bristol, Rhode Island, 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 Bristol, Rhode Island Tax Attorney Help?

If you work for yourself in Bristol, you have to stay on top of your self-employment taxes, to avoid facing significant legal and financial issues later on. This means you need to keep reliable records of all your income and expenses, in case you need to seek the advice of a tax attorney: the more information you can provide your lawyer, the better he or she can help you.

That said, if you are having trouble figuring out precisely how much self-employment tax you owe in Bristol, Rhode Island, 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 obligation, 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 Bristol

Bristol is located in Bristol County, Rhode Island. It is a small city with a population of around 23,000 people. It is a seaport that is named after Bristol, England. In fact, the atmosphere at Bristol Harbor is very serene and peaceful. It is one of Bristol's most beautiful spots!

Major industries that drive Bristol's economy include boat building, manufacturing and tourism. Some great attractions include America's Cup Hall of Fame, Blithewold Mansion, Gardens and Arboretum, Bristol County Jail, Bristol County Courthouse, Bristol Ferry Lighthouse, Colt State Park, Gillary's Tavern, Herreshoff Marine Museum, Linden Place, Mount Hope Bridge, Poppasquash Farms Historic District, Joseph Reynolds House, and Coggeshall Farm Museum. As evident, Bristol is a history-lover's delight!

Bristol is also home to many law offices established by competent attorneys. These attorneys are well-experienced in many areas of law, making them easily able to handle the legal needs of residents and local businesses.

All in all, Bristol has it all--beauty, history, charm, and serenity!

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