How to Pay Self-Employment Tax Online

If you want to reduce some of the paperwork from your business, you can pay your self-employment tax online. Because the online forms give you the ability to save your work and return later, it's easy to pay your taxes online. It's also absolutely free. Read on to learn how to pay self-employment tax online.

Difficulty: Easy

Instructions

1. Enroll online at the Electronic Federal Tax Payment System (EFTPS) website. Alternately, visit the website to find out how to enroll by mail. Once you submit the form, you'll receive a confirmation booklet and step-by-step instructions on how to obtain a password.

2. Multiply your expected income from the business by .153 to estimate the amount of self-employment tax that you owe. This is both the employer's share and the employee's share of the Medicare and social security tax.

3. Add the amount of self-employment tax to your estimated income tax. Divide the amount by 4 to get a quarterly amount.

4. Make the total amount payable at any time during the year. It's best to pay it quarterly, but at least pay all of it by the January quarterly of the following year or before filing your taxes. This will help avoid late and penalty fees.

5. Go to the ETPS website and enter using the password you received. Submit the request for payment at least one calendar day prior to the estimate due date.

6. Know your account information, including both account and routing numbers, if you're paying from your checking account. Have your credit card in front of you if you're paying by credit.

Tips & Warnings

• If your income is over $94,200, add $11681 (the $94,200, which is the ceiling for social security tax, times 12.4% the amount of the 15.3% that is used for social security) and add it to the amount that you get when you multiply your total earnings by .029 (2.9% is the amount for Medicare tax).
• If you don't believe you will owe any income tax, you still need to calculate out how much you believe you will earn and find out what the self-employment tax is.
• The due dates are April 15 for the money made January to March 3 of that year, June 15 for money made April 1 to May 31, September 15 for money made June 1 to August 31, and January 15 of the next year for money made the balance of the year.

Resources

• EFTPS Website
• IRS Online