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According to the IRS, 40% of self-employed individuals fail to make estimated tax payments, leading to unnecessary fees (Internal Revenue Service, 2023). But with the right strategy, you can stay compliant, maximize deductions, and avoid financial stress. Here’s what you need to know.

Why CEOs & Business Owners Should Pay Attention to Self-Employed Quarterly Tax Payments

If you’re a CEO, founder, or business leader, you’re responsible for more than just your own taxes. Your employees and contractors also rely on you to ensure compliance and avoid financial missteps. Mismanaging estimated tax payments can lead to:

• Employee misclassification penalties (if workers are incorrectly labeled as independent contractors)
• IRS audits for non-compliance
• Cash flow disruptions due to unexpected tax liabilities
• Increased tax burden if estimated payments are miscalculated

CEOs should implement tax planning strategies to ensure both their own and their company’s financial health. Consulting with our tax professional guides can help optimize payroll taxes, deductions, and compliance strategies.

Who Needs to Make Self-Employed Quarterly Tax Payments?

If you’re self-employed and expect to owe at least $1,000 in taxes after deductions and credits, the IRS requires you to make estimated tax payments. This includes:

• Freelancers & Contractors (writers, designers, consultants, etc.)
• Small Business Owners & LLCs
• Gig Workers (Uber, DoorDash, Airbnb hosts, etc.)
• Side Hustlers & Content Creators (Etsy sellers, influencers, YouTubers)
• CEOs & Business Owners Paying Themselves (via draws or distributions)

Key Deadlines for 2025 Self-Employed Quarterly Tax Payments

Mark these IRS due dates in your calendar to stay ahead:

• April 15, 2025 – Covers income earned Jan 1–Mar 31
• June 17, 2025 – Covers income earned Apr 1–May 31
• Sept 16, 2025 – Covers income earned Jun 1–Aug 31
• Jan 15, 2026 – Covers income earned Sept 1–Dec 31

If you overpay, you’ll get a refund. Underpay? You could owe penalties, even if you settle by April 15.

How to Calculate Your Self-Employed Quarterly Taxes

Your estimated tax payments include:

• Income Tax – Based on your total earnings and tax bracket
• Self-Employment Tax (15.3%) – Covers Social Security (12.4%) & Medicare (2.9%)

You can deduct half of this on your tax return.Example Calculation for an $80,000 freelancer income:

• Self-Employment Tax: $80,000 × 15.3% = $12,240
• Income Tax (22% bracket): $80,000 × 22% = $17,600
• Total Tax Owed: $29,840
• Quarterly Payments: $29,840 ÷ 4 = $7,460 per quarter

Deadlines vary by state and business situation. Use IRS Form 1040-ES or trusted tax software for accuracy. For expert tips, visit our blog.

Avoid These Costly Mistakes

• Skipping Payments: The IRS charges penalties if you don’t pay at least 90% of this year’s tax or 100% of last year’s tax (110% for high earners) (National Taxpayer Advocate, 2023).
• Underestimating Your Income: If you land a big project, adjust your payments so you don’t owe a lump sum in April.
• Ignoring Deductions: The IRS says 20% of self-employed people overpay taxes because they miss deductions (Internal Revenue Service, 2023). Keep receipts for:
  • Home office expenses
  • Internet & software costs
  • Mileage & travel
  • Business meals & Education

Why CEOs & Business Owners Need Tax Experts

• 82% of small businesses save money by working with a tax professional (Forbes, 2023).
• Reduce IRS audit risk with accurate filings.
• Maximize deductions and keep more of your hard-earned income.
• Ensure tax compliance for employees & independent contractors to avoid legal trouble.

At Parikh Financial, we specialize in helping self-employed professionals, business owners, and entrepreneurs navigate complex tax regulations with ease.

Our expert team provides tailored tax planning strategies, ensuring compliance while maximizing deductions and savings. Whether you need assistance with quarterly tax payments, deductions, or IRS audits, we’re here to help.

Contact us today to simplify your tax journey.