Many business owners are surprised to learn that they may be required to pay taxes four times a year instead of just once. Quarterly estimated taxes apply to self-employed individuals, freelancers, and business owners who don’t have taxes withheld from their income.
At Aretera Corporation, we help businesses navigate estimated tax payments to avoid penalties and keep cash flow in check. Here’s what you need to know about quarterly taxes and whether they apply to you.
What Are Quarterly Estimated Taxes?
The IRS requires businesses and self-employed individuals to pay taxes on income as they earn it. If you don’t have taxes withheld from a paycheck (like traditional employees do), you’ll likely need to pay estimated taxes quarterly.
Quarterly taxes cover:
✅ Income Tax – Federal and, if applicable, state income taxes.
✅ Self-Employment Tax – Covers Social Security and Medicare for self-employed individuals.
Who Needs to Pay Quarterly Taxes?
You need to make quarterly estimated tax payments if you:
🔹 Expect to owe at least $1,000 in taxes after subtracting withholding and credits.
🔹 Are self-employed, a freelancer, or a business owner without payroll tax withholding.
🔹 Receive investment, rental, or other income not subject to withholding.
Common examples of who pays quarterly taxes:
✔️ Freelancers and independent contractors
✔️ Small business owners (sole proprietors, LLCs, S-corps with pass-through income)
✔️ Real estate investors
✔️ Gig economy workers (rideshare drivers, online sellers)
Not sure if you need to pay quarterly taxes? Our team can evaluate your situation and help you stay compliant.
When Are Quarterly Tax Payments Due?
The IRS sets four quarterly tax payment deadlines:
📅 April 15 – Covers January 1 – March 31 income
📅 June 15 – Covers April 1 – May 31 income
📅 September 15 – Covers June 1 – August 31 income
📅 January 15 (next year) – Covers September 1 – December 31 income
If the due date falls on a weekend or holiday, the deadline is the next business day.
🔴 Missed a deadline? Late payments can result in penalties and interest. We can help you file quickly and minimize penalties.
How to Calculate Your Quarterly Tax Payments
Your quarterly payments should cover:
📌 Federal Income Tax – Based on expected earnings and deductions.
📌 Self-Employment Tax – 15.3% of net earnings (if applicable).
📌 State & Local Taxes – If required in your state.
Most businesses estimate their total annual tax liability, divide by four, and pay in installments. The IRS Form 1040-ES includes a worksheet to help calculate the amount.
💡 Want an easier way? We calculate your estimated taxes for you, so you don’t overpay or underpay.
What Happens If You Don’t Pay?
Failing to pay quarterly taxes can result in:
🚨 Underpayment penalties – The IRS charges interest on unpaid amounts.
🚨 A surprise tax bill – A large lump sum due at year-end.
🚨 Possible IRS scrutiny – Consistently underpaying could raise red flags.
📢 Avoid penalties and surprises! Our team ensures you stay on top of your quarterly tax payments.
How We Make Quarterly Taxes Easy
Handling quarterly tax payments alone can be stressful. At Aretera Corporation, we:
✅ Accurately calculate your estimated tax payments.
✅ Track and remind you of upcoming deadlines.
✅ File all necessary forms on your behalf.
✅ Offer tax planning strategies to reduce your overall tax burden.
Let’s Simplify Your Tax Payments
If you’re required to pay quarterly estimated taxes, staying ahead of deadlines is crucial. We take the guesswork out of tax filing so you can focus on growing your business.
📞 Contact us today to get your estimated tax payments set up and avoid IRS penalties!
Disclaimer:
The information provided in this article is for general informational purposes only and is not intended as professional advice. Our firm makes no guarantees about the accuracy or applicability of the information. For specific advice related to your situation, please contact us directly. We are not liable for any decisions made based on the content of this article.
