Important Small Business Quarterly Tax Due Dates You Need to Know
As a small business owner, staying on top of your tax deadlines can be a daunting task. The last thing you want is to fall behind on your taxes and face penalties and fines. By staying aware of important quarterly tax due dates, you can avoid these issues and keep your business on track. In this article, we’ll discuss the essential quarterly tax due dates that every small business owner should know.
Quarterly Tax Due Dates
Quarterly taxes are due four times a year, typically on the 15th of April, June, September, and January. However, due to weekends and holidays, your actual due date may vary. Below are the specific due dates for 2021:
– April 15, 2021
– June 15, 2021
– September 15, 2021
– January 18, 2022
It’s essential to note that if the 15th falls on a holiday or weekend, the due date will be the next business day.
How to Calculate Quarterly Taxes
Calculating quarterly taxes can seem intimidating at first, but the process is relatively straightforward. First, determine your taxable income for the quarter by subtracting your business expenses from your revenue. You’ll then multiply this amount by the appropriate tax rate, which is currently 15.3%. This rate includes both self-employment tax and Medicare tax. The resulting amount is your estimated quarterly taxes.
Penalties for Late Payment
Failing to pay your quarterly taxes on time can result in penalties and interest charges. The IRS charges a penalty of 0.5% per month, up to a maximum of 25%, for late payment. Additionally, interest accrues on the unpaid balance until it’s paid in full.
Conclusion
Staying on top of your small business’s quarterly taxes is crucial to avoid penalties and fines. By knowing the specific due dates and following the appropriate calculations, you can keep your business on track and avoid any late payment issues. Be sure to mark your calendar with the quarterly tax dates for 2021 to stay on top of your tax obligations.
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