Everyone knows about the big bad tax date, April 15th, right?
… But what about all the other “little” tax deadlines in between, like the estimated tax payments due every quarter?
In case you aren’t sure about this whole quarterly tax thing, here’s a quick rundown (and a good article below with more info!)
𝗪𝗵𝗮𝘁 𝗲𝘅𝗮𝗰𝘁𝗹𝘆 𝗮𝗿𝗲 “𝗘𝘀𝘁𝗶𝗺𝗮𝘁𝗲𝗱 𝗤𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀”?
Every quarter, you need to make a tax payment based on your estimated income for the year. This includes taxes like income tax, Social Security tax, Medicare tax, and more (if applicable)
If you were a W2 employee working for a company, these taxes would automatically be taken out of each paycheck.
However, since you and I are self-employed business owners and freelancers, we have a different process for paying these taxes.
𝗗𝗼 𝘁𝗵𝗲𝘆 𝗮𝗽𝗽𝗹𝘆 𝘁𝗼 𝗺𝗲 𝗮𝗻𝗱 𝗺𝘆 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀?
Probably – although it doesn’t have the exact same effect on every business. However, if you made more than $400 this year through your business, you’ll need to file and pay something. (Keep in mind – there are penalties for late filings!)
𝗛𝗼𝘄 𝗱𝗼 𝗜 𝗰𝗮𝗹𝗰𝘂𝗹𝗮𝘁𝗲 𝗵𝗼𝘄 𝗺𝘂𝗰𝗵 𝗜 𝗼𝘄𝗲?
This depends on a LOT of different things. How much money did you make this year? (This affects what tax bracket percentage you fall into). What kind of structure is your business? (A single-owner LLC is different than a corporation)
You can learn more about how to calculate it – and even use a handy calculator tool – at this link:
𝗪𝗵𝗲𝗻 𝗮𝗿𝗲 𝘁𝗵𝗲 𝗾𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗱𝘂𝗲?
They’re due on the 15th of January, April, June + September. If the date happens to fall on the weekend, the due date shifts to the next business day.
(And the next deadline is coming up quickly so don’t forget to get your finances up to date and filed before then! )
What about you? Do you already budget for and calculate quarterly taxes in your business? Or is this something you struggle to remember (and do)?
By the way, if you’re looking at that deadline date and thinking “There’s no WAY I can get my finances updated and estimated and filed in time for that – !!”, then just reach out
We specifically help our clients with estimated quarterly payments – making deadlines like these pain-free and super easy– and we’d love to help you, too!
Kerry Postel – Founder CEO Principal
Abacus Business Solutions
Has Higher National Diploma in Business and Finance, Certified in QuickBooks, Member of American Institute of Bookkeepers, and over 20 years of bookkeeping experience including construction, travel, restaurants, events management, and other various professional services.
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