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Quarterly Estimated Taxes for Businesses

Expert LLC tax services by Wasserman CPA: choose the right classification for your business and maximize efficiency.


Quarterly Estimated Taxes for Businesses

Running a successful business model requires a lot more than just serving clients or creating great products for customers. It also requires maintaining full control of your finances and happy tax authorities satisfied with your compliance. At this point, quarterly estimated taxes should be mentioned as one of the most essential tax obligations for business owners. If these taxes are not paid accurately and on time, this avoidable situation can result in penalty fees, unnecessary stress and potential cash flow issues.

Wasserman CPA obtains a proactive approach to understanding the specific necessities of each client and building long-term business relationships. Rewarding professional expertise and our efforts, we have plenty of ongoing contracts with our clients in South Jersey and beyond. For over three decades, we actively managed quarterly estimated taxes for different businesses from various industries.


What Are Quarterly Estimated Taxes?

Quarterly estimated taxes are paid periodically year-long to cover income taxes that are not withheld. Self employed individuals, small business owners and investors are required to pay these types of taxes. If the business model does not withhold enough tax through payroll, estimated tax payments are required to be paid every quarter. These taxes can be grouped as below:

  • Income taxes
  • Self-employment taxes
  • Alternative Minimum Tax (AMT)
  • Other applicable federal and state taxes

The expectation of the IRS is that businesses and individuals pay as they go rather than waiting until April to settle everything. One of the main purposes of these payments is to prevent taxpayers from a big tax bill and potential penalties during the tax season.


Who Needs to Pay Quarterly Estimated Taxes?

Self-employed individuals are typical quarterly estimated taxpayers. The following structures may also be required to pay quarterly estimated taxes:

  • Business structures operate as LLCs, corporations or partnerships and do not have taxes automatically withheld from their income.
  • The business has employees and income tax withholding does not fully cover the tax liability.
  • There is significant other income—such as investment earnings or side business income.

If you expect to owe at least $1,000 in taxes after subtracting withholding and refundable credits, the IRS likely wants you to respect your quarterly payments. Avoiding these payments or underpaying might end up with penalties—something Wasserman CPA can help you avoid.


Our Estimate and Planning on your Quarterly Payments

Wasserman CPA has an approach to develop a streamlined process to help every business owner with specific needs. Our professional support is presented below but not limited to:

  • Financial Analysis: We perform deep analyses on your income, deductions, and credits to determine the payment amount accurately in each quarter.
  • Customized Payment Plans: Our tax professionals provide assistance on quarterly payment schedules that would be compatible with your business model with cash flow performance.
  • Projections & Adjustments: Business income can fluctuate. Wasserman CPA assists with payment adjustments if circumstances change (i.e., taking on a massive project or facing unexpected slowdowns).
  • Reminders & Deadlines: We know life gets busy and remind our clients periodically as part of our approach to quarterly taxes.

The Deadlines for Quarterly Payments

The IRS has a scheduled list of major deadlines for quarterly estimated tax payments:

  • April 15 (First Quarter)
  • June 15 (Second Quarter)
  • September 15 (Third Quarter)
  • January 15 of the following year (Fourth Quarter)

Key Tax Forms for Quarterly Estimated Taxes

1. Form 1040-ES

Self-employed individuals, freelancers and sole proprietors can use this form to calculate and pay quarterly estimated taxes. This form includes information to estimate income, deductions and credits.

2. Form 1120-W

C corporations calculate and pay quarterly estimated taxes by using this specific form. The form assists corporations account for corporate income tax and other applicable federal tax 

3. Schedule C (Form 1040): Profit or Loss from Business

This form is primarily used at year-end. It simply determines the taxable income required for quarterly estimated tax calculation.

4. Form 2210: Underpayment of Estimated Tax

This form is filed if clients have underpaid their quarterly estimated taxes throughout the year. It assists in calculating penalties and providing insight into how much should have been paid during each quarter.

5. State-Specific Estimated Tax Forms

States often require their own quarterly estimated tax forms, like NJ-1040-ES, for individuals and businesses in New Jersey. The correct form is important for full compliance.


The Most Typical Issues

There may always be mistakes when quarterly estimated taxes are managed. We often present our recommendations to our clients as listed below:

  • Adjustments for Fluctuations: When your income changes so should your quarterly payment amounts. We provide all the assistance in terms of updating estimates to avoid potential penalties.
  • Additional Tax Obligations: Quarterly taxes do not just include income tax. They also cover self-employment tax and other applicable state or federal taxes. Our services cover all the aspects.
  • Overpaying Due to Fear of Penalties: Many different business owners overpay in order to avoid penalties and cash flow is impacted. We provide accurate calculations to avoid such issues and allow you to have the full performance of your funds.

How Wasserman CPA Helps You Stay Ahead

Wasserman CPA has an experienced team well-seasoned on quarterly estimated tax requirements set by the IRS and all the other state and federal tax authorities. Our differences set us apart in this field:

  • Client-Focused Services: We accept the fact that no two business models are alike. Our approach is always focused on the specific needs of each different client. We dedicate our services depending on your unique requirements. 
  • Proactive Support: We provide our support all year long to avoid taxation-based surprises.
  • Local Expertise with Corporate Touch: With 30 years of experience in South Jersey, our approach combines local expertise with professional care. We promise to provide the best available guidance for your businesses.

Conclusion

Quarterly estimated taxes are not just about avoiding a big April tax bill. These tax payments provide essential protection for businesses and prevent potential cash flow difficulties. We are here to help our clients fully understand, plan in advance, and execute the quarterly payments—so they can get back to doing what they have a passion for most: running the business.

Contact us to get started with quarterly estimated tax services and make sure your business finances are on track today and see how we can assist you!

OUR CLIENTS

CLIENTS THAT TRUST OUR SERVICES


Marc has been both my business and personal accountant for several years. During this time I have had a number of small businesses and bought and sold real estate. I know that I can rely on Marc to do the best possible job for me in any financial situation.


JEAN WILCOX



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