If you’ve made or are making a transition to self-employment, in essence, you have become your own Human Resources and Payroll Department. Those notes on your old paystubs that you may have paid little attention to are likely tax liabilities for which you are now directly responsible. While most workers are subject to the “Pay-As-You-Go” or (PAYG) system, where income tax is taken from each paycheck and sent to the Internal Revenue Service. The IRS expects those who are self-employed to make quarterly estimated payments if they anticipate owing $1,000 or more on their taxes.
Simplify your tax strategy and spend more time focusing on your career with these financial tips and tax timelines that can be found on our Jemma Financial website.