When do you tax yourself?

I am S-corp and on payroll; every quarter I withhold ( pay to IRS) between $2100-2400 and about 450 to the State - depending on the work load for that quarter but regardless of the revenue. Then when there is time to file, I go to my accountant where they calculate all the equipment depreciation and all other deductions resulting more often than not in a refund on a personal level - meaning that my withholding is more not necessary.

 

As TallJoe said, I also file as an S-corp, as such, I'm an employee of the S-corp.

I use Quickbooks Pro with the payroll feature set up. I take the same salary every month. Quickbooks calculates the payroll tax related withholdings, including the companies required payroll taxes & contributions.

Once I cut the check, I open up the payroll liabilities section for taxes due in that given month and I pay it! I have an account set up online with both the State & the I.R.S. I get it out of the way pronto and at the end of each quarter, Quickbooks tabulates, reconciles and creates the quarterly forms for the State & the I.R.S. I print them out, sign them and send them in.

Easy as pie.

 

I'm a Sole Proprietor and i put 25-33 percent aside of every invoice then at the end of the year I figure out what I owe them. I also try to spend as much as I can back into my business to grow it while simultaneously reducing my tax bracket. I'm considering starting up a Corporation next year and transferring all assets to said business and leasing them all back to my Sole Proprietorship.