Learn how to pay quarterly estimated taxes as a contractor
IRS guide to estimated tax payments for self-employed individuals. Covers who must pay, when payments are due, how to calculate amounts, and penalties for underpayment.
Source: Internal Revenue Service (IRS)articleApplies to: 2025
Visit ResourceRelated Topics
Contractor vs Employee Compensation
Contractors typically need to charge 40-70% more per hour than the equivalent employee hourly rate to achieve comparable take-home pay, because they cover self-employment tax (15.3%), health insurance, retirement, PTO, and business expenses themselves.
Employee Salary Equivalent
An employee salary that matches your contractor income is typically 25-40% lower than your contractor gross, because the employer covers half of FICA taxes, provides benefits, and gives paid time off that you currently fund yourself.
Last reviewed: 2026-11-01 • Federal / General