View Single Post
Old 04-17-2007, 03:17 PM  
Snake Doctor
I'm Lenny2 Bitch
 
Snake Doctor's Avatar
 
Join Date: Mar 2001
Location: On top of my soapbox
Posts: 13,449
You have to pay withholding tax if you pay yourself a salary. That has to be paid every month, it includes estimated withholding plus FICA taxes on your salary.

Estimated tax payments on your bonuses or dividends or any other profits that don't come in the form of a salary don't have to be paid quarterly, but if they're not you have to pay an underpayment penalty at the end of the year.

Personally I don't pay quarterly because the interest rate for underpayment is so low I'd rather use that money as operating capital during the year, and then pay the small interest charge. That's better than being without the money during the year IMO.
__________________
sig too big
Snake Doctor is offline   Share thread on Digg Share thread on Twitter Share thread on Reddit Share thread on Facebook Reply With Quote