Quarterly Tax Filing

The Ultimate Guide for Quarterly Tax Filing Requirements for Indiana Employers

Self-employed taxpayers and most employers likely need to pay quarterly tax payments to make it simpler to meet key IRS deadlines. The estimated quarterly taxes require filing four times every year and may seem like a chore.

Still, it is the best way to soften your tax burden if you project the payments correctly. Once duly paid, you will have an easy time when the tax filing time rolls around, as you would have already completed your approximate tax liability.

In this guide, you will learn all the quarterly tax filing requirements for Indiana employers.  Also, read on to answer common questions like “Who should pay quarterly taxes?” “When are estimated quarterly taxes due?” and “How to pay the quarterly taxes?”

Who Has To Pay Quarterly Taxes?

Small business owners or anyone working as self-employed may pay quarterly estimated taxes. IRS defines self-employed as people who work as:

  • Independent contractors
  • Running a business as your own, including part timed
  • Working as a sole proprietor in a field of trade
  • Any member of a partnership conducting a business like an LLC

When filing taxes on the IRS, you will pay taxes as you earn income as they use a pay-as-you-go income tax system. It enforces this by charging penalties for underpayments whenever you don’t pay enough income taxes by making quarterly estimated payments or withholding tax. IRS also charges penalties for late payments even when you get a refund.

The rules that determine who can make quarterly estimated tax payments for the calendar year 2022 are:

  • Your tax projection exceeds $1,000 after removing withholding and tax credits during tax return filing.
  • Withholding and tax credit will not be less than:
    • 90% of the quarterly estimated tax for the year 2022
    • 100% of the tax shown in the 2021 federal tax return as long as it covers all 12 months. If this is not valid, refer only to the 90% rule.

The tax code refers to the last items as the harbor rule. It increases to 110% of the adjusted gross income if it is more than $150,000. The figure is half when you have a partner and file separately.

IRS offers exceptions to farmers and fishers who make about 66.6% of income from trades and do not meet the equivalent tax liability.

It is a good idea to pay taxes quarterly to avoid the cash crunch that usually accompanies tax time. It makes it seamless to pay bills easier than a single lump payment, especially if you don’t keep records and underestimate your taxes due.

Who Doesn’t Need To Pay Estimated Taxes?

IRS sets clear guidelines on who should and who shouldn’t pay the estimated taxes. Some of the groups exempted from paying include:

  • Employees: Only employers should be doing the quarterly tax withholding on behalf of their employees. Due to the high number of employees involved, other employers may get the amounts wrong. You can avoid this by handing them Form W-4s to ensure they deduct the right amount.
  • A special case: These are groups who meet the following three conditions:
    •  You don’t owe any tax in the previous year and don’t have to file an income tax return
    •  You are a US citizen or resident for an entire year
    •  Your tax year was 12 months long

When Are Estimated Taxes Due?

2022 estimated quarterly tax deadlines are:

  • From January 1 to March 31: April 18
  • From April 1 to May 31: June 15
  • From June 1 to August 31: September 15
  • From September 1 to December 31: January 17 of the following year

Note: Any due dates that fall on a legal holiday or weekend shift to the next business day.

How to Pay Quarterly Taxes

Estimated payments can be made by one of the following methods:

  • File a preprinted estimated tax voucher offered by the Indiana Department of Revenue (DOR) for taxpayers who had already paid estimated tax
  • Paying online
  • Filling out ES-40.
  • Form 941 (Federal)

The last two are using the INTIME online tax system. Our overview of INTIME is here, and our guide to setting up an account is here.

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