Paying self-employment taxes on time means paying less
Self-employment tax is the same tax every worker pays to help fund the Social Security and Medicare programs. The difference is, entrepreneurs take on the responsibility of paying this tax themselves.
Before you started your own business, your employer deducted employment taxes from your salary and paid the I.R.S. for you. If you qualified for a refund when you calculated your taxes for the year, you received some of that money back. Now that you are your own boss, you need to send quarterly estimated tax payments to the I.R.S. on your own. This “pay as you go” method is divided up into four payments during the year that are due on April 15, June 15, September 15 and January 15. You need to pay one quarter of your self-employment tax on each one of those dates, and you will be fined underpayment penalties and interest if you don’t.
You figure out how much you owe in self-employment taxes, and then you should talk to a trusted tax advisor and review the Schedule SE. To avoid underpayment charges, you must owe less than $1,000 in taxes or to have paid at least 90% of the tax you owe when you file. Paying on time is a great way to keep more of your own hard-earned money!
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Stick To Your Mission & Goals
While its easy to pick up new projects as the year goes on a video with dancing ponies may be cute and trendy, for example always ask yourself if it aligns with, or helps further, your mission and goals. This will ensure that you dont end up devoting your time to projects that arent helping to move your business forward.
Concerned you might forget your goals? Consider writing them down or printing and taping them to your computer monitor whatever you have to do to keep them top of mind.
Pro Tip: Send yourself an email reminder or set a calendar alert for a day in March to make sure you’re sticking to the course. Sometimes interrupting your workday is the best way to jolt your memory and encourage you to take action.
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