Quarterly Taxes: The 5 Things You Need to Know
When it comes to taxes, understanding the details is essential for businesses of all sizes3 min read
When it comes to taxes, understanding the details is essential for businesses of all sizes. To help you better understand what is involved with quarterly tax payment obligations, UpCounsel, a network of experienced business lawyers, is here to provide the information you need.
Wherever you are located, the points below will offer a better understanding of when quarterly taxes are due and how to properly pay them. But for those located in New York, these points are especially important as local compliance obligations must be met. This article will help you make sure you not only meet all of these obligations but do how to easily pay them.
Taxes can be one of the most difficult administrative tasks for businesses of all sizes. Knowing when, how, and what taxes you need to pay is a key step in meeting your obligations as a business. If you are a business based in New York, this is even more critical since state tax obligations are additional points of compliance. To help you understand more about quarterly taxes and make sure you are compliant in New York, UpCounsel is here to provide the necessary information.
1. When Are Quarterly Taxes Due?
If you are based in the United States, quarterly taxes are due every three months; they usually arrive on the 15th of the specified month in January, April, July, and October. However, if the 15th falls on a weekend, credit or federal holiday, they due dates will be pushed to the next business day. These taxes include federal taxes, state and local taxes, and estimated payments.
2. What Kind of Taxes Are Due and How Much?
In terms of federal taxes, the exact amount you need to pay for quarterly taxes vary based on the income of the business. Your accountant can help you calculate your estimated federal tax payment amount. Typically, if your business incomes more than $500,000 per year, then you will have to make estimated quarterly payments on the federal level; if your business earns less, then you may want to look into the IRS options or consider other options.
State taxes in New York can be a bit confusing. This is because there are a variety of different tax obligations that you may need to pay as a business in New York. These tax obligations may include business income tax, corporate franchise tax, corporate excise tax, unemployment insurance tax, and real estate transfer tax. Each type of tax has its own separate payment approach and due dates, so it is important to be aware of all of your relevant tax liabilities.
3. What Are the Forms Necessary to Send and Where?
For federal quarterly taxes, you will need to file the Form 1040-ES and send it to the IRS address located on the form. For New York state taxes, the forms you need to submit may vary and are specific to the type you are paying on. For 'Business and Corporate Taxpayers', you will need to use Form CT-600, and for unemployment tax, the form to use is Form NYS-45. It is important to note that the forms need to either be submitted electronically or mailed to the relevant tax agency, depending on if the form can be filed online or not.
4. What Are the Benefits to Electronic Payment Options for Quarterly Taxes?
Most federal and many state taxes allow for electronic payment options. This is because the federal government and states have recognized the need to make tax payments more efficient and effective for businesses. Electronic payment options are not only more secure; they also provide for greater visibility of payments made and helps ensure that payments are received on time.
5. Are Late Fees and Other Penalties a Consideration?
Yes, late fees and other penalties may be a consideration when not meeting quarterly tax obligations. But, if you have a valid reason as to why you were not able to make a tax payment on time, such as a death in the family or an illness, the IRS may waive the penalty for that particular period. However, this is not a guarantee, and different state requirements may apply.
Understanding your quarterly taxes is an important part of being a business and meeting your compliance obligations. UpCounsel, an experienced legal services provider, can help you better understand and meet the compliance requirements of your business in a timely and effective manner. With access to talented lawyers across the United States, we are here to help you succeed.