Self-Employment Taxes: The Basics

Hi! Welcome! Here are a couple of things to know before we get started:

• When you have a regular job, your employer takes care of payroll taxes for you—covering income taxes (state and federal), Social Security, and Medicare.

• They do this by filing a Form 941 with the IRS and whatever your state’s version is. And guess what? They also cover half of your Social Security and Medicare taxes.

Yes! Half! Every time! It’s required!

But when you work for yourself? Congratulations, you’re now both employer and employee—double the tax, double the fun. That means you’re responsible for the full amount. And when is that due?

Quarterly Tax Due Dates:

📅 Q1 – April 15

📅 Q2 – July 15

📅 Q3 – October 15

📅 Q4 – January 15 (of the following year)

Now that you’re informed, I bet you have questions. Probably something like, “What?! Kaila, did you just make that up?” No, my friend, I assure you, this is very real. I can send you many, many sources to prove it.

Then comes the inevitable: “Okay... but how do I pay it? How much is it? And how much trouble am I in if I never did that?”

I’m so glad you asked! (Tax preparers are very used to hearing “Am I going to jail?” No, you are not. You especially won’t if I do my job well. And I am very good at my job. So breathe, my anxious little taxpaying friend.)

How to Pay Your Self-Employment Taxes

You’ve got options!

💰 Adjust Your W-2 Job Withholding – If you also have a job that issues a W-2, you can have them withhold extra taxes to cover your self-employment (SE) taxes. Step 2 of your W-4 can help with this, and the IRS has a handy withholding calculator [linked here].

📬 Send Estimated Tax Payments Each Quarter – This is my personal favorite! Your estimated payment slips print with your prior year’s return, making it easy. Here’s a pro tip: Instead of sending it straight to the IRS, stash it in a high-yield savings account first. Earn some interest while you wait, and then send it off before the deadline. Depending on your tax bill, this could add up to a nice little bonus!

The TL;DR? Taxes as a self-employed person can be tricky, but you’ve got tools to make it easier—and you’re definitely not alone. Now go forth and be financially responsible!