The direct answer is yes. You have to know about self-employment taxes. A follow-up question would be, what you should care about? What taxes should you pay as a self-employed individual? Can you do the tax preparation and file it yourself or you’ll just utilize tax services in Round Rock, Texas to do the tasks for you? Whether a professional will do it for you or not, it’s necessary for you to be informed.
- Types of taxes you should pay.
You may pay both for self employed tax and income tax. Basically, self-employment tax pertains to the tax you pay for Social Security and Medicare. For an employed person, the Social Security and Medicare taxes are already automatically deducted by employers. Since you don’t have an employer-employee relationship, you have to do it yourself. On the other hand, income tax is a separate obligation by figuring out your net profit or net loss.
- Information and updates for tax filing.
Depending on your income as a sole proprietor, independent contractor, part-time business, or self-employed, you might be required to file an annual return and pay estimated tax quarterly. Visit the IRS website to be more informed about your obligations and the dates you should take note of. You may also look for reliable tax accounting firms in Texas to guide you.
- Tax services you might need.
If tax issues are too complicated for you or you’re not good with figures at all, you may request professional advice. You only have to make sure that the provider of accounting and bookkeeping services is someone you can trust. For safety purposes, you can ask for recommendations from your family members or friends.