Tax Adviser for Self Employed Workers

Starting your own venture or branching out as a freelancer is an exciting time that allows for a flexible schedule and greater control over your career. More freedom comes with more responsibility, however. One of the hardest parts of managing a self employed career is understanding taxes. Since you no longer have an employer pulling taxes out of your paycheck, the responsibility falls on you. It can be difficult to understand, so it's always best to count on the professional assistance of a tax advisor. Paramount Tax and Accounting can help you plan and file your self employment taxes.

What Taxes do You Have to Pay?

All employed individuals in the United States must pay the FICA tax, or the Federal Insurance Contribution Act in addition to federal and state income taxes. The FICA covers Social Security and Medicare. If you are a salaried or hourly employee, your employer covers half of these taxes for you. As a self employed individual, however, you will have to cover the full amount of these taxes on your own - 12.4% for Social Security and 2.9% for Medicare. And, since you aren't getting taxes withheld every paycheck, you most likely will have to pay this 15.3% tax quarterly! But don't panic yet, with the help of a Paramount Tax tax advisor, you can minimize your taxes owed. We work closely with CPAs to ensure all of our tax services are prepared properly.

When you file your taxes as a self employed or contract worker, you can deduct all of your business expenses, effectively lowering your total taxable income. There is a fine like to walk here, however, as the IRS only allows certain things to be counted as business expenses. From the Schedule C form to quarterly tax deadlines, understanding self employment taxes can be a headache. With tax services from Paramount Tax, you can get organized and make your payments on time. We will help you plan and prepare for your quarterly payments so you never miss a deadline. Our accounting agents can help you understand what deductions you can take and how to provide adequate proof for them. Don't let taxes scare you away from your dream of self employment. With tax preparation from Paramount Tax, taxes are made easy.