Question

Does anyone have a good worksheet for quarterly IRS/state withholdings for an S-corp? I made the mistake last year of grossly underestimating in two quarters, grossly underestimating the other two, and am trying to figure out a better way to calculate either based on gross income or P&L.  

Answer 1

Base it on P & L. But to avoid underpayment penalties just divided prior year's taxes by 4 and use those numbers.  

Comments

Ha, that's exactly what I'm trying to avoid doing, my prior year and current year are never in the same ballpark! I'm trying to find a way to get quarterlies accurate based on CURRENT P&L

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I would still use prior year. If you owe at end of year so be it. I would rather save the cash flow for the responsible business rather than give more than necessary to the irresponsible government.