The Payroll Blog

News, tips, and advice for small business owners

Last Quarter Tax Tips

Posted On
8/1/2018
By
Stephanie Davis

If we had to guess, we’d say most people haven’t thought about their taxes since they filed them or requested an extension back in April. While that’s completely understandable, it never hurts to start prepping now for your 2018 taxes. In May, we posted an article about some ways you can start getting organized now for the next tax season, including knowing your deductions and how to get help sooner if you struggled this year.

For this article, we are going to be focusing on the important deadlines you do not want to miss and some other key information that may help you out.

Did you file for an extension?

Perhaps you were swamped with your business, dealing with some personal issues, or just simply not prepared, so you decided to file an extension. Giving yourself some extra time instead of rushing to get it done and then making mistakes is always the right call, but it’s important to make sure you don’t forget about that important deadline.

Should you be paying estimated quarterly taxes?

As a small business owner, did you know that you might have to be paying estimated quarterly taxes? If you expect to owe less than $1,000 in taxes after subtracting federal income tax, then you are exempt. If you expect to owe $1,000 or more, you will likely have to make payments each quarter. This applies to individuals, including sole proprietors, partners and S corporation shareholders. For C Corporations, they generally have to make payments if they expect to owe $500 or more. Additionally, if you are a contract worker, or have contract employees, quarterly tax payments are also expected. For a closer look into estimated taxes, check out this page from the IRS.

Bottom Line

While taxes are stressful, putting everything off until the last minute and missing key deadlines is even more stressful. Tax season is a time that has to be treated with care to ensure you aren’t going to face costly deadlines for mistakes or filing late. Be sure to check in with us as we get closer to year-end for even more tips and tricks for being tax ready.