What is Self-Employment Tax?

 

In our previous blog post, Employment Tax: What is it?, we covered what Employment Tax is and what the different kinds are, like FICA, FUTA, Unemployment Insurance, Payroll Taxes, etc. We also covered the minor differences between Employment Tax and Payroll Taxes, so if you’re looking for more information about Employment Tax basics, check it out. In this post, we’ll be discussing what Self-Employment Tax is, and what the main differences are between Self-Employment Tax and Employment Tax.

Self-Employment Tax

Self-Employment Tax, also known as Self Employed Contributions Act (SECA) taxes, are the taxes that self-employed people, like freelancers, independent contractors and sole proprietors, are required to pay to the Internal Revenue Service (IRS). Self Employment Tax consists of Social Security and Medicare taxes. These taxes are essentially equivalent to the Employment Taxes employers are required to pay as part of the Federal Insurance Contribution Act (FICA).

One advantage of Self-Employment taxes, according to the IRS, is that “you can deduct the employer-equivalent portion of your SE tax in figuring your adjusted gross income,” whereas “wage earners cannot deduct Social Security and Medicare taxes.” So while these taxes are unavoidable for all, at least they’re deductible for those that are self-employed.

What is the Self-Employment Tax rate?

The Self-Employment Tax rate, which consists of Social Security and Medicare taxes, is 15.3%. This breaks down into 12.4% for social security and 2.9% for Medicare.

In general, as mentioned before, sole proprietors, independent contractors, freelancers, and, depending on the state, single-member Limited Liability Corporations (LLCs), are required to pay Self-Employment Taxes. If you’re wondering if you’re required to pay Self-Employment Taxes, here are the stipulations according to the IRS (as of 10/18/2020):

• Your net earnings from self-employment (excluding church employee income) were $400 or more.
• You had church employee income of $108.28 or more.
  
  

Self-Employment Tax Recommendations

If you’re self-employed as an independent contractor or freelancer, or even as a sole proprietor or single-member LLC in certain states, you’ll want to think ahead and play it smart when it comes to your self-employment taxes. As we mentioned in our previous article, Employment Tax: What is it?, an employer typically withholds and matches the Medicare and Social Security taxes, so in a situation where you are self-employed, you will be responsible for all of these taxes, which is the 15.3% we mentioned earlier. So set some aside every month for your taxes and play it safe! In some states, you may be required to file quarterly, but in general, many states allow you to file your taxes once a year. Just be prepared!

Self-Employment Tax Summary

• The Self-Employment Tax rate is 15.3%.

• You will be required to pay self employment taxes if your net earnings from self-employment (excluding church employee income) were $400 or more OR you had church employee income of $108.28 or more.

Employment Tax Issue Relief

In our next post, Employment Tax: Issues and Relief, we’ll discuss some of the options available to help with employment tax issues and self-employment tax issues.

Employment Tax What is it

What is Employment Tax?

Tax Problem Resolution / employment tax, payroll tax relief

Hello and welcome to our new blog mini-series discussing all things Employment Tax! In this blog post, we’ll be getting back to the basics to …

What is Employment Tax?Read Article

What is Employment Tax?

 

Hello and welcome to our new blog mini-series discussing all things Employment Tax! In this blog post, we’ll be getting back to the basics to talk about what Employment Tax is. We wanted to start with the foundation, so business owners across the country can have a better understanding of Employment Tax, how it affects their business and what they can do if they’re ever in need of Employment Tax relief options. 

We’ll also discuss what the differences are between Employment Tax and Payroll Tax. The differences are more technical than significant, and the two can sometimes be used interchangeably, but in case someone really wants to know their stuff, we’re happy to provide the information! So feel free to subscribe below or like us on Facebook to stay up to date on our future blog posts.

Employment Tax: What is it?

Employment Tax, along with Payroll Tax, are the taxes that businesses are required to pay directly to the Internal Revenue Service (IRS). However, what they encompass, how and when you pay them, and how you file the two are slightly different.

Employment Tax

Employment taxes are all the taxes a business is required to pay that are associated with their employees. These taxes are Federal Unemployment Tax Act (FUTA) taxes and Unemployment Insurance taxes (commonly referred to as Unemployment Taxes), Federal Insurance Contribution Act (FICA) taxes, additional Medicare taxes, Workers Compensation Benefit Funds, Federal Income Taxes, and Payroll Taxes.

Payroll Taxes

Payroll taxes include local payroll taxes, imposed by some cities, but mainly comprise of the Medicare and Social Security taxes that a business is required to withhold from employees and match.

As mentioned above, in the grand scheme of things, the differences between Payroll Taxes and Employment Taxes are fairly small, so it’s easier to think of them in one lump sum, rather than in two different arenas, since they both correlate to taxes that businesses are required to pay to the IRS as a result of having employees. The IRS itself hardly even uses the term Payroll Taxes, except for situations when it applies to Form 941, which is the Employer’s Quarterly Tax Return Form. This is the form your business is required to file quarterly to report to the IRS the taxes your business has withheld from employees and matched.

Employment Tax Summary

• Employment taxes are the taxes businesses are required to pay to the IRS as a result of having employees.

• Employment taxes include: FUTA, FICA, Unemployment Insurance, Workers Compensation Benefit Funds, Federal Income Taxes and Payroll Taxes like Medicare and Social Security Withholdings.
  
  

Self-Employment Tax

In our next blog post, Employment Tax: What is Self-Employment Tax?, we’ll discuss Self-Employment Tax and then, in the following post, Employment Tax: Issues and Relief, we’ll begin to look into Employment Tax issue relief options.

What To Anticipate From IRS Tax Resolution

 

When you owe back taxes from past years, it can be challenging to understand why you ought to think about a firm to assist you with IRS tax resolution. Nonetheless, if you are seeking effective ways to reduce the amount of your unsettled government income tax financial debts, there are excellent tax resolution services readily available. If you desire to understand more regarding which of the companies have a proven history of effectively aiding their clients get help with their government income tax debt and also learn what those firms do to assist them get the help they require, then proceed keeping reading. At the end of this write-up, you will discover some fundamental information on what to get out of your solution.

IRS tax resolution will start with gathering any documents you have associated with your tax financial obligations. These include charge card declarations, tax returns, financial institution declarations and various other vital records. Furthermore, you may also intend to bring with you duplicates of invoices as well as any other evidence of receipt, such as repayment slides. It is necessary for you to obtain all this paperwork prior to contacting a tax resolution specialist. When you have actually collected all of this details, you can begin calling among the tax experts listed below.

When you have every one of the required documentation prepared, you can get in touch with one of the IRS specialists listed here to review your circumstance. The very first step in the process is to gather any type of sustaining documentation that associates with your debts and also tax obligations. As an example, you might wish to prepare a description of the tax financial obligations, along with what your financial objectives are. In this manner, you can supply this info to the expert and also have him or her much better understand your demands.

As soon as you have collected every one of the documents you require, you need to contact the professional's office. You will wish to meet the professional prior to you start any kind of arrangements, yet the function is not to negotiate with them. Instead, you will certainly wish to gather as much information as feasible to assist provide assistance for your situation. During the conference, you will intend to have the expert describe your present circumstance and also your choices. This will assist prepare you for future meetings and also make points less complicated for you in future conversations.

During the conference with the specialist, you must likewise review the alternatives you have with your IRS agents. You might want to use a third party company to represent your rate of interests. If this is the case, you should maintain he or she or company on a pay-roll and also provide a checklist of questions to ask the rep to respond to. You must additionally assess the paperwork that you have actually gathered. As the meeting proceeds, the professional must ask any kind of concerns that you may have for more info and also clarify any choices offered to you based upon your information. As the meeting progresses, the specialist will assess your financial background, any kind of tax debts you owe, and also exactly how you will be paid off. This details is made use of to make a thorough proposition.

Your expert will certainly clarify just how your instance can be solved, as well as what you need to do to follow the guidelines outlined in the proposal. The outcome of the settlement will certainly be an arrangement that consists of a settlement strategy based upon your particular scenario. You will certainly obtain a created paper detailing the information of your new arrangement, and also you will certainly get a percent of what you will eventually be paid. The expert will provide this negotiation to your IRS agent, as well as you will certainly authorize it as well as submit it to your agency. to start the settlement procedure. Contact us at http://www.travelful.net/location/4472992/united-states/bullseye-tax-relief

Tax Problem Resolution Specialists, Bullseye Tax Relief, Launch New Webpages

Bullseye Tax Relief, located in Northridge, CA, but offering their IRS tax resolutions services nationwide, has announced several new web pages on their site. These new web pages cover topics like IRS Tax Problem Resolution, Payroll Tax Debt Relief and IRS Offer in Compromise. Visiting these web pages can give readers more insight into their potential options when it comes to tax resolution, payroll tax relief and offer in compromise to help pay off tax debt and reclaim their financial freedom.

 

“Many people aren’t aware of all of the options and services available to them to help them with payroll tax relief or tax resolution,” Maximos Behnan, the CEO of Bullseye Tax Relief, said. “There are plenty of ways we can help people with their tax debt. We wanted to create these new web pages so people know that there is hope and there is a place where they can go for trustworthy information. Most of all, we want people to know that they can do something about their tax debt and we’re here to help.”

 

Tax problem resolution and IRS tax resolution services are relevant to millions of Americans. That’s why the Tax Problem Resolution page on Bullseye Tax Relief discusses all of the major options people have when it comes to any IRS problem resolution needs. Some of the most common services are Offer in Compromise, Penalty Abatement and Installment Agreements, but there are so many more options and services available depending on the specifics of the situation. Visit the page to learn more about which IRS tax resolution services are best for you.

 

Offer in Compromise, also known as IRS Offer in Compromise or Tax Offer in Compromise, is a tax resolution service specifically for those who are unable to pay off their tax debt without experiencing financial hardship. With the help of tax problem resolution specialists like Bullseye Tax Relief, the total amount of debt owed can be negotiated with the IRS to reduce it to a much smaller amount. Interested readers can visit the Offer in Compromise page to learn more about the qualifications and process.

 

The last of the new web page additions is the Bullseye Tax Relief page about Payroll Tax Debt Relief, which can be viewed by clicking the link included in this sentence. On this page, readers can learn more about payroll tax, like what it is, and what the components are. The page also goes into more detail about payroll tax relief and the options and process involved with resolving any payroll tax issues.

 

To view more information about IRS tax resolution services, simply visit the Bullseye Tax Relief website at www.bullseyetaxrelief.com. For a consultation or appointment, Bullseye Tax Relief can be reached by email at info@bullseyetaxrelief.com or by phone at (844) 582-3323. Bullseye Tax Relief is located at 16933 Parthenia St #202, Northridge, CA 91343 and open from 10 a.m. to 7 p.m. Monday through Friday.

Article Source:  https://www.bullseyetaxrelief.com/tax-problem-resolution-specialists-bullseye-tax-relief-launch-new-webpages/

Tax Resolution Services - How Do You Find Them?

 

Tax resolution services is a term used by some specialists to explain any kind of expert solutions used for settling tax matters. This consists of preparing the required monetary records, tax advice, preparation of returns and also numerous various other services.

If you're in the need for expert suggestions pertaining to the tax liabilities of a specific or a company, you might get in touch with tax resolution services. It's extremely simple to obtain puzzled when it concerns financial matters, which is why a professional service can assist you in many ways. Tax resolution services generally have experience in this field and possibly have knowledge in almost every feasible angle of tax responsibility resolution. If you just have a tiny inquiry as well as do not see your problem clearly, simply call us for a cost-free consultation.

The first step we absorb organizing a totally free assessment with a tax specialist is to ask the customer what his/her present monetary condition is. By offering a total declaration of your economic position today, the expert will certainly have the ability to suggest services that will aid you deal with any kind of problems encountered. The specialist must likewise have a good suggestion of the length of time the monetary problem might remain to last.

Debt and taxes might appear to be entirely unconnected, yet it is not. In fact, the majority of taxpayers learn their personal financial obligations are significantly larger than their gross income. This is frequently the reason they require expert support with tax resolution.

Expert tax resolution services understand different methods for decreasing tax obligations. Some individuals pick to settle their taxes by paying them off by round figure as well as filing an income tax return for that year. Other individuals select to work with a tax legal representative to negotiate their tax obligations and also obtain them reduced. There are additionally those who work with professionals to conduct a thorough analysis of their monetary situation, after which they make an educated choice concerning their financial situation and also seek the necessary tax alleviation.

Tax resolution services ought to provide all the needed information to enable you to file your taxes. It's much better to be secure than sorry. The very best tax resolution services are generally professionals in taking care of IRS demands and IRS guidelines and regulations. They will certainly ensure to clarify your inquiries, to make sure that the solutions you get are correct as well as beneficial.

We suggest that you make use of tax resolution services provided by the most reliable tax companies. These companies will have the right abilities as well as know-how in managing IRS procedures and the tax regulations, to ensure that you'll be able to submit your tax obligations with no problems.

Tax resolution services can likewise assist you save cash if you're battling with tax obligations. Numerous firms use solutions such as lowering your tax liability by negotiating your responsibilities with IRS as well as by aiding you avoid some typical mistakes when preparing your tax return. Check https://foursquare.com/v/bullseye-tax-relief/5f19364f079dc227916e666d for a reliable tax resolution company.