Every quarter we crunch your S Corp numbers and email you estimated tax payment instructions. If you're onboarding or recently finished, the action steps below will guide you on the process.
Click here if you'd like to learn about the Tax Return Process for both 1120s Business and 1040 Individual tax returns.
To really bake your noodle, please remember that S Corps do not pay income tax. The S Corp's net income passes through to your 1040 Individual Tax Return. That means these quarterly payments are all about your personal taxes, so don't be surprised when we remind you to pay them from your personal checking account. They won't show up on your S Corp's profit and loss report, because they aren't business expenses.
To find out how much to pay in personal taxes, simply analyze your business net income. Simple. Right. Sure. Makes total sense. This concept was in no way invented in the dark dreams of businesspersons and congresspersons.
- Click here for quarterly tax payment dates and reporting periods.
- Calculate 30% of your S Corp's net income by running a profit and loss report in QuickBooks Online for the correct reporting period.
- If your state does not have a personal income tax, pay all 30% to the federal government. We're looking at you Florida, Texas, and Washington.
- If your state does have a personal income tax, pay 20% to the federal government, and 10% to your state government
- Click here to pay the federal government.
- Click here to pay your state government.