941s and Quarterly Tax Payments

There are two basic ways you can work for yourself: as an employee or independent contractor. Remember that if you get paid with 1099s like most of us, it's reported to IRS on 1099/Misc. and we have to pay 15.3% for SS and Medicare (7.65% x 2). Remember to make your estimated quarterly tax payments to Uncle Sam or you may be caught April 15th with a whopping tax bite. Even though I'm incorporated I elect to treat myself as an employee and pay into unemployment in case I cannot find work (unlikely). At least I can get six months of unemployment insurance. I make quarterly tax payments using a 941 and include my salary and tax contributions each month to the IRS. You have a 15 day grace period to pay your federal w/h and ss/mc payments. This does not stop you from making additional quarterly payments to the IRS, if you elect to pay yourself a salary plus distributions.