BATS Xpress, LLC

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September 1 - 2021 Fall and 2022 Tax Planning

September 10 - Report Tips to Employer 

If you are an employee who works for tips and received more than $20 in tips during August, you are required to report them to your employer on IRS Form 4070 no later than September 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

September 15 - Estimated Tax Payment Due 


The third installment of 2021 individual estimated taxes is due. Our tax system is a “pay-as-you-earn” system. To facilitate that concept, the government has provided several means of assisting taxpayers in meeting the “pay-as-you-earn” requirement. Here is a refresher on how it works:


Who needs to pay estimated tax?

• Individuals, sole proprietors, partners, and S corporation shareholders who expect to owe tax of $1,000 or more when you file your return, generally have to make estimated tax payments.

• Corporations who expect to owe $500 (or more) in tax when their corporate return is filed generally have to make estimated tax payments.

• If you have business income from self-employment, you are required to file an annual return and pay estimated tax quarterly. 

How do you pay your quarterly taxes?

• Apply your refund from this year to your estimated taxes for the next year (you can do this at the time you submit your annual tax return).

• Use Form 1040-ES to figure your estimated tax. Then mail a check or money order with Form 1040-ES each quarter.

• Visit IRS.gov to use the Electronic Federal Tax Payment System. Here you can make payments weekly, quarterly, or monthly, and you can set up payments up to a year in advance.

• Call your BATS Xpress team – we can assist you with calculations and submissions.

What happens if you don’t pay your 2021 estimated taxes?

If you don’t pay any of your 2021 estimated taxes, you may incur a penalty for the underpayment. The penalty is a complicated formula; it’s imposed on the amount of underpayment for the number of days it’s unpaid, starting with the first quarter payment. Call us if you have questions or concerns about your estimated payments.