Depending on your business entity structure, you may need to do Quarterly Estimate payments to avoid penalties from federal and state for not paying enough.
Most employees don’t have to worry since their withholdings are done each paycheck. And if you do payroll for yourself through your company that you own, you might be alright, but check with your accountant.
Sometimes, depending on your structure being C corporation. S corporation or Limited Liability Company (LLC) one person LLC or partnership, the profit may be higher even after you deduct your pay check and therefore after you add that to your personal taxes you may owe more federal and state taxes.
Try to keep up your bookkeeping to know how much profit you have year to date before you do your Quarterly Estimates. They are usually due. April 15, June 15, Sept 15and Jan 15. The Jan 15 one is the 4th Quarter estimate. This is the last chance you have to make sure you have paid enough estimates throughout the year.
If you need help making sure your books are up to date and you paid enough estimates we can help you if you are not working with any qualified Accountant. Visit us atHTTP://www.JNKcpa.com and to learn more about QuickBooks to help keep up the bookkeeping Http://www.TrainingQuickBooks.