I just started my own cleaning business and would like to know how much taxes to withhold from each check?
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I just started my own cleaning business and would like to know how much taxes to withhold from each check?
Hi, janelle28!
I just moved your question to this topic area because I thought that it would get noticed more and answered to your satisfaction the best here.
Thanks!
Read about self employed tax filing and payment of estimated taxes: Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor
If you just started, you should withhold about 25% from each check received and put it in a separate account so that it is available to pay your tax bill come 15 April 2009.
If your gross receipts hit $50,000, up the percentage to 33%.
Next year, you will have to make quarterly estimated tax payments using Form 1040-ES.
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