Self Employment Tax in Kent, Washington

Find the right Self Employment Tax attorney in Kent, WA

Self Employment Tax Lawyers in Kent

In the U.S., Kent, Washington included, almost everyone who is employed during most of their adult life is suitable for Social Security and Medicare benefits when they retire. These programs are supported by taxes deducted from the paychecks of most employees.

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

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 Kent, Washington

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.

However, if you're self employed in Kent, Washington, 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 Kent, Washington pay a self-employment tax rate of 15.3% of their income that's derived from self-employment. However, 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. Additional 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 Kent, Washington Tax Attorney Help?

Self-employed individuals in Kent must ensure that they keep good, accurate financial records. This makes it much easier to determine what you owe, and, if you need a tax attorney, it makes it easier for them to advise you with your legal tax concerns.

With all that said, if you are having difficulty determining just how much money you owe in Medicare and Social Security taxes from self-employment in Kent, Washington, 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 Kent

Kent is located in King County, Washington. It is a surrounding suburb of Seattle. Per the 2010 census, Kent is home to 92,411 people.

Top employers include REI, Oberto Sausage, Boeing, Coho Distributing, Sysco, Alaska Airlines and Starbucks Coffee. Other employers include small law offices and boutique law firms that employ many competent attorneys and support staff. Such entities easily tend to the legal needs of residents.

The city is well-recognized as the popular host for such events as the Cantebury Faire, Kent Cornucopia Days, Kent Farmers Market, ShoWare Center, and Kent Saturday Market.

Famous residents include Earl Anthony, Ernie Conwell, Jeff Jaeger, Brenda Raganot, Cam Weaver, and Kelly Bachand.

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