Estimated Payments

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by on November 13, 2010 at 4:34 pm

Why do we pay State quarterlies?

Here’s an outstanding cartoon, brought to us by Walt Disney…

That was then, this is – well then also

The government smartened up. They realized a lot of taxpayers can’t be relied upon to set money aside and send in quarterly payments – hence, mandatory withholding. It has saved everyone a lot of headaches. The burden of withholding is placed upon the employer. We receive a statement with our paycheck explaining how our money was allocated to different government agencies. Nice and clean cut. We get a W-2 in the mail, file our taxes, and get our refund.

Mandatory withholding works quite well in almost all applications. One exception is with merchant mariners. Seamen are protected under section 11,108 of the US Code. Employers cannot withhold taxes for States. It’s a two sided coin that shields us from State tax liability under many circumstances. A burden is placed upon mariners as taxpayers to make sure they are paid up and in full with the State.

How do I determine quarterly liability

We’re going to try to get a calculator up shortly. There will be a link in place when it’s finished. It’s tricky because every State has different rules and regulations on this matter.

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