What is a fiscal quarter in business and payroll?
A business quarter is a three-month period used for financial reporting, payroll tax filings, and performance tracking. The fiscal year is divided into four quarters, each spanning three consecutive months.
Having a strong financial foundation is important for any small business owner, and understanding fiscal quarters is essential for timely payroll tax filings, accurate financial planning, and IRS compliance.
What are the four fiscal quarters?
Typically the four fiscal quarters are shortened as Q1, Q2, Q3, and Q4. Standard business quarters follow this structure:
- Q1: January 1 – March 31
- Q2: April 1 – June 30
- Q3: July 1 – September 30
- Q4: October 1 – December 31
Why do businesses track quarterly financials?
Businesses rely on quarterly financial tracking to:
- File payroll taxes on time: Employers must submit Form 941 (quarterly payroll tax return) to the IRS.
- Analyze business performance: Having a consistent time period helps with tracking revenue, expenses, and profit trends.
- Plan for tax season: Quarterly reports simplify year-end tax preparation.
- Manage employee benefits and bonuses: Many businesses offer quarterly incentives based on performance.
How do quarters impact payroll taxes?
Employers are required to file payroll tax reports with the IRS and state agencies each quarter, including:
- Form 941: A federal payroll tax return due at the end of each quarter.
- State unemployment insurance (SUI) reports: Many states require quarterly SUI tax filings.
- Estimated tax payments: Businesses making estimated tax payments must submit them quarterly.
Small business owners can use payroll software to help track tax deadlines automatically and file payroll taxes on time.
Quarterly tax filing deadlines for small business owners
The IRS and most state agencies require quarterly tax filings by these due dates:
- Q1 deadline: April 30
- Q2 deadline: July 31
- Q3 deadline: October 31
- Q4 deadline: January 31 (of the following year)
Missing these deadlines can lead to late filing penalties, so staying on track is crucial.
How Homebase simplifies quarterly payroll tasks
Manually tracking quarterly payroll taxes can be overwhelming, but Homebase payroll makes it simple by:
- Automatically calculating and filing quarterly payroll tax forms
- Tracking employee earnings and tax withholdings per quarter
- Providing payroll reports to streamline financial planning
- Ensuring compliance with IRS and state tax filing deadlines
Payroll tax compliance doesn’t have to be a source of stress. Sign up for Homebase today to help ensure your quarterly taxes are accurate, compliant, and filed on time.