Don’t Miss These Small Business Quarterly Tax Due Dates
As a small business owner, it’s important to allocate sufficient time to ensure compliance and avoid costly fees and penalties. With that in mind, we have compiled a list of small business quarterly tax due dates to help you stay on top of things.
How Does Quarterly Tax Work?
Many small business owners are surprised by their tax bill each year, but it doesn’t have to be that way. Quarterly tax is a way for you to pay your taxes as you earn your income, mitigating the impact of a large tax bill at the end of the year. Here are the essential things that you should know about quarterly taxes:
When Are Quarterly Tax Payments Due?
Quarterly tax payments are due four times a year: January 15th, April 15th, June 15th, and September 15th. However, if the date falls on a weekend or holiday, the deadline is moved to the next business day. You can apply for an extension, but you will still be required to pay an estimated tax amount by the deadline.
Who Needs to File Quarterly Taxes?
If you are self-employed or have income that is not subject to tax withholding, then you are required to pay quarterly taxes, including:
– Sole proprietorships
– LLCs
– Partnerships
– S-corporations
– Corporations
How to Calculate Quarterly Taxes
To calculate your quarterly tax payments, use the worksheet provided with Form 1040-ES. The worksheet will help you estimate your income, expenses, and deductions. Subtract your expenses and deductions from your income, and then multiply the result by the tax rate for your bracket.
Conclusion
Missing quarterly tax deadlines can lead to significant penalties and fees. As a small business owner, it’s essential for you to stay on top of your finances and meet your tax obligations. Use the information provided above to help you schedule and prepare for your quarterly tax payments. Remember that maintaining accurate records and consulting with a tax professional whenever necessary will help you stay on track.
