How To Calculate and Make Estimated Tax Payments by
Caron_Beesley, Community Moderator - Created: March 5, 2012,
7:54 am As a new business owner, understanding your tax
obligations is critical and one of the first requirements you’ll
need to understand are estimated tax payments. What are
estimated taxes? Who must pay them and how? Below are some facts
from the IRS Estimated Tax Guide to help new small business
owners understand their estimated tax obligations. What Are
Estimated Taxes? The IRS and your state’s treasury department
require that individuals and businesses pay taxes almost as
quickly as they earn income. If taxes aren’t withheld from wages
or other payments, then you will likely need to pay estimated
tax payments each quarter. Think of estimated taxes as a “pay-
as-you-go” tax. Four times a year (quarterly), you are required
to send Uncle Sam enough of your revenues to cover your income
tax and your self-employment tax (Social Security and Medicare)
obligations. If you don’t pay enough tax throug