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This is the approach I would use, but keep in mind it is only a rough 'thumb up in the air' method. The quarterly estimated payments you are required to make, as an independent contractor, are just that -- estimates. When you complete your final tax return for the year, that is when your final tax liabilities are 'trued up' and you wind up with paying or receiving a refund for the differential (i.e. actual versus estimates).The main thing is that you pay the bulk of your tax liability before the tax return is filed, in order to avoid unwanted penalties.I would use last year's tax return as a rough guide. Open up Excel (or other spreadsheet program) and create the following format.This 'simple' example paints very broad strokes, but the idea is to set last year's actual return right alongside this year's tax projections. For the purpose of simplicity, I have made both of your gross incomes (from employment activities) identical for both years ($100K each).The second thing is to quantify what your taxable income will be. This is the amount you pay tax on, which will undoubtedly differ from your gross earnings. I haven't outlined the reasons why they differ because it is impossible for me to know what components will affect you. The most common ones are:itemized deductionsexemptionscapital gains/(losses)dividendsAdditionally, as a contractor, you may have legitimate business expenses, which can also be used to reduce your taxable income. This will apply only to the year when you were an independent contractor.Again, using last year as a guideline, try to estimate what these items will be for the current year. If your lifestyle has remained constant between the two years, very likely these reconciling items will be pretty close between the two years. If something has changed dramatically, such as you no longer having a mortgage or owning property in one of the years, you should account for the differences in your itemized deductions (i.e. mortgage interest, property taxes).As you examine last year's tax return, you will see that there exists a percentage relationship between the taxes you paid and the taxable earnings. In this example, you paid 25% in federal taxes and 10% in state taxes. These rates can be applied to the current year's taxable earnings calculation, which will be derived from your estimated gross earnings plus or minus the aforementioned reconciling items.Now that you have your total tax liability estimate for the current year, you can subtract your husband's portion (what you estimate he will pay in federal and state income taxes, via his payroll deductions). If he is on a salary, you can examine one of his paychecks (with respect to the taxes that were withheld) and multiply that by the number of paychecks he'll receive this year (probably 24 or 26) (Section B).Section A minus Section B should be your share of the total tax liability. The table presented below is on an annual basis. Therefore, each quarterly payment should be one fourth of the amount you anticipate paying.Please note, I am making a number of grand assumptions here (the reason both Wray and I are hesitant to provide a definitive answer), and your situation may differ materially. It may be that your income is extremely uneven, that you could make twice or three times the amount from one quarter to the next. About the best you can do is to estimate the seasonality of your consulting and to continually fine-tune your estimates by updating your spreadsheet (in order to arrive at a reasonable annual estimate).I hope this advice proves helpful to you. Good luck.

First things first:Have you put together a budget? You'll never get far with saving money without putting pen to paper and making one.List your fixed expenses, such as:Rent or mortgageCar paymentsInsurance premiums (auto, home, life, health)Weekly food purchasesUtilities (gas and /or electric, cable TV, telephone, other.Vehicle gasoline and average monthly average maintenance costsCredit card interestAny other bill that comes regularlyList your discretionary expenses:Eating outMovies or showsBooze and cigarsLunch costs at workAny other expenses that you control the amount ofNow see which of these expenses you could cut down or eliminate.Aside from money you contribute to a 401K or IRA via payroll deduction, take the funds at you find that you can save by adjusting your budget and deposit them in a separate IRA account at your bank. Maybe you csn increase the payroll deduction amount, also.This isn't all-inclusive, but it's a start. You must be able to realize and track where your money goes each month before you can begin to control or manage anything.

Managing payroll for a small team has its challenges. The paperwork and time commitment alone can overwhelm any savvy business owner with hundreds of other responsibilities. Proper payroll requires careful planning and proper tools to get the job done so your employees can expect their pay-cheques to arrive on time, without any errors.Small teams don’t always have a dedicated payroll manager so it ends up being the business owner’s responsibility. If that person is you, it helps immensely to have a set of best practices in mind for tackling payroll for your small business.For those who operate a small business, here is a list of payroll best practices for small teams.1. Keep track of important payroll dates and deadlinesWrite down and track important payroll dates for the fiscal year. Being prepared for deadlines and submission dates are crucial to effective payroll management because missing deadlines can result in unnecessary fees, penalties or interest payments—crushing for any small business owner. That’s why our first and most important tip is to be prepared.For Canada, the best place to find this information is on the Government of Canada payroll website. There, you’ll find everything you need to know on managing employee payroll for your small business.2. Have a payroll communication plan in placeA payroll communication plan is simply a clear understanding of pay structure between you and your employees. The purpose is to avoid any miscommunication, errors or unclear agreements and to help employees understand their net pay. It may be included in the on-boarding package you give to your employees on their first day with information on their pay schedule or how vacation accrual is handled.For Canada, The Canadian Payroll Association recommends the following measures:Publish a template that will identify all elements of the pay statement including details of the earnings and deductionsExplain how different exemption amounts and tax credits can impact net pay, be unique to each individual, and change over timeInvolve payroll in the orientation of new employees and include a sample lexicon in the commencement packageConsider the organization’s broader communication strategies utilizing their intranet, the Internet, and print publicationsPrepare an annual statement of compensation and benefits3. Use electronic pay statementsIf you’ve settled into a nice payroll groove and have been paying your employees on time without a hitch, it might be time to automate. Electronic payroll systems/software have been around for ages and have the benefit of letting the software take care of the more repetitive parts of the payroll process. Employees love the hassle free digital experience and employers love the efficiency.There’s also the added benefit of freeing up more time, cloud data storage, payroll reporting, end-of-year filing, and much more. On payday employees will receive their pay stubs via email — a much more modern approach than receiving a piece of paper in the mail.No budget for software? Many payroll software providers offer free small business payroll as long as you have a limited number of employees. Rise small business payroll for example is free for any business with 20 employees or less. If you are a growing company with over 250+ employees the Avanti has a payroll solution that is worth a try.Payroll software is a massive time-saving tool and is definitely worth adding to your team for the convenience alone.4. Classify employees the correct wayTo file your tax forms the correct way your employees must be classified the right way. You would be surprised at how many companies classify their employees incorrectly. Full time employee or independent contractor? Part-time or volunteer? Seasonal or intern? Knowing the distinction between these types of employee classifications is crucial to proper tax filing at the end of the year.5. Keep your payroll records tidyHaving tidy and well-kept payroll records pays off in the long run. This means all historical records for employees are easily accessible whenever the need arises.We’re past the days of filing cabinets — powerful payroll and HR software systems are now the norm. A human resource information system (or HRIS) easily collects and stores historical data inside each employee profile so that payroll information can be found right when you need it.6. Audit your payroll system regularlyLastly, schedule regular audits of your payroll system to make sure it’s doing the best job possible for your business. Take note of where your payroll process can be improved or automated. These are the areas eating up the most time for your administrators. Is the system producing results? Are mistakes or errors common? Are repetitive tasks optimized for efficiency? Identify what is working and what isn’t and explore proper solutions that suit your needs.Wrapping upEffectively managing payroll for a small team requires a solid grasp of these best practices. If we had to summarize it, organization and preparation are imperative for smooth payroll processing and simple filings at the end of the year.If you are one of the many business owners being overwhelmed by payroll, tools such as modern payroll software are a lifesaver.If this is something that resonates with you, lets connect!