NYC Tax Advocates

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Specializing in IRS and NYS Tax Representation. Workers Compensation Audits, Payroll, Sales and Income Tax representation for Businesses, Individuals, Restaurants and Construction Companies. Civil and Criminal Workers Comp Audit representation includes: NYSIF Examinations, Premium Disputes, Employee Misclassification, Underreporting, Unreported Income, and Failure to Keep Accurate Payroll Records.

Wednesday, April 19, 2017

SE TAX DEDUCTION


In 2016, the tax rate on the employee portion of Social Security is 6.2% on wages up to $118,500, thus maximum Social Security tax withholdings will not exceed $7,347.00. Medicare tax of 1.45% is withheld from all wages regardless of amount. On Schedule SE for 2016, self-employment tax of 15.3% applies to earnings of up to $118,500 after the earnings are reduced by 7.65%. The 15.3% rate equals 12.4% for Social Security (6.2% employee share and 6.2% employer share) plus 2.9% for Medicare. If net earnings exceed $118,500, the 2.9% Medicare rate applies to the entire amount. One half of the self-employment tax may be claimed as an above-the-line deduction. In addition, net self-employment earnings could be subject to the 0.9% Additional Medicare Tax if earnings exceed certain threshold amounts.

Selig & Associates provides the most aggressive tax representation allowed by law. Specializing in Trust Fund Recovery Penalty (TFRP) representation, and all payroll, income and sales tax controversies. We settle contested tax audits; negotiate excellent payment plans, compromise tax debts, and resolve all civil and criminal tax issues, including innocent spouse relief and separation of liability. For a FREE CONSULTATION call us today (212) 974-3435



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