What are quarterly taxes?

Quarterly taxes are estimated tax payments that self-employed individuals and businesses must make to the IRS four times per year to cover income tax, self-employment tax, and, in many cases, payroll taxes. These payments help the government collect taxes on income that isn't subject to automatic withholding, such as business profits, interest, dividends, or contract work.

For small business owners—especially those with employees—quarterly tax filing is a critical part of staying compliant and avoiding costly penalties. With the right tools, like Homebase, managing quarterly payroll taxes, deadlines, and reporting becomes more straightforward and far less risky.

Who needs to pay quarterly taxes?

1. Self-employed individuals and freelancers

If you expect to owe more than $1,000 in taxes for the year (after subtracting withholding and credits), the IRS requires you to pay estimated taxes quarterly.

2. Small business owners

If your business is a sole proprietorship, partnership, S corporation, or LLC, and the business income flows through to your personal tax return, you’re likely responsible for quarterly estimated tax payments.

3. Employers with W-2 employees

Even if you’re not self-employed, you must deposit federal payroll taxes (including income tax withholding, Social Security, and Medicare) regularly—usually either monthly or semi-weekly—and file Form 941, the Employer’s Quarterly Federal Tax Return, every three months.

When are quarterly tax payments due?

Quarterly tax payments are due four times per year:

Q1: April 15 (for income earned January 1–March 31)
Q2: June 15 (for income earned April 1–May 31)
Q3: September 15 (for income earned June 1–August 31)
Q4: January 15 of the following year (for income earned September 1–December 31)

If the date falls on a weekend or holiday, the due date moves to the next business day.

For payroll taxes, Form 941 is due by the last day of the month following each quarter:

April 30
July 31
October 31
January 31 (for Q4)

What’s included in quarterly tax filings?

For business owners, your quarterly tax payments may include:

Federal income tax (based on estimated profits)
Self-employment tax (15.3% total for Social Security and Medicare)
State income taxes, if applicable
Payroll tax deposits, if you have employees
Form 941 reporting, if required

Failing to pay or file on time can result in late payment penalties, interest charges, and IRS notices—so it's critical to stay organized.

How to calculate quarterly taxes

To estimate how much you owe, you’ll need:

Your projected annual income
Business expenses and deductions
Self-employment tax rate
Current federal and state tax brackets
Estimated tax payments already made (if any)

Most business owners use IRS Form 1040-ES to calculate and submit their quarterly tax payments. Many also rely on accounting software or work with CPAs to avoid underpayment.

How to pay quarterly taxes

You can pay quarterly taxes through several methods:

Online via the IRS Direct Pay portal
Through the Electronic Federal Tax Payment System (EFTPS)
By check or money order with a payment voucher
Through payroll tax software that automatically deposits employer taxes,

For employers filing payroll tax returns (Form 941), most use payroll platforms or tax filing services to manage deposits and filings automatically.

Best practices for managing quarterly taxes

Keep your books current: Up-to-date income and expense tracking makes accurate estimates easier.
Save for taxes regularly: Set aside a percentage of your income (often 25–30%) throughout the year.
Use software tools: Payroll and tax software can automate filing deadlines and reduce manual calculations.
Consult with a tax professional: Especially if you’re hiring, growing, or changing your business structure.
Don’t ignore state taxes: Many states require separate quarterly filings, especially for income or unemployment taxes.

How Homebase helps with payroll and quarterly tax compliance

Homebase helps small business owners take the guesswork out of payroll and tax compliance. Whether you’re running a cafe, retail shop, or service business, Homebase:

Calculates and withholds payroll taxes automatically
Files Form 941 and other federal payroll forms on your behalf
Submits federal and state payroll tax deposits
Tracks hours, wages, and tips to ensure accurate reporting
Helps you stay on schedule with quarterly filing deadlines

Instead of scrambling every three months, Homebase helps you keep payroll clean and compliant year-round.

Explore Homebase HR & Compliance to simplify your payroll taxes, avoid late fees, and keep your business on solid legal ground.

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