Self-Employed? Shouldn’t You Be Making Quarterly Payments?

Self-Employed? Shouldn’t You Be Making Quarterly Payments?
Shutterstock
Mike Valles
Updated:
0:00
Starting a new business enables you to enjoy the freedom you want. You are in charge and can run your business how you see fit. You can also get many tax breaks previously unavailable as an employee. Of course, it also means you may need to pay quarterly taxes.

People That Need to Make Estimated Quarterly Payments

People with income not from an employer, such as business owners, contractors, and freelancers, need to make quarterly tax payments. The payments may also be called estimated tax payments. They are based on your quarterly income.
Other people may also need to make Internal Revenue Service-estimated tax payments. Score reveals that shareholders in an S- and C-corporation also must make these payments. Sole proprietors, partners, and S-corporation shareholders must make estimated tax payments if they owe more than $1,000 after subtracting all deductions. C-corporation shareholders must make estimated tax payments if they owe more than $500 after subtracting all their deductions.

What IRS Quarterly Payments Should Include

Quarterly payments must include more than just taxes on your business income. These payments must also include the money you owe with your self-employment taxes, such as your Social Security and Medicare payments for yourself and any employees you have for the quarter.
Mike Valles
Mike Valles
Author
Mike Valles has been a freelance writer for many years and focuses on personal finance articles. He writes articles and blog posts for companies and lenders of all sizes and seeks to provide quality information that is up-to-date and easy to understand.
Related Topics