Quarterly Tax Payments

Recently started a side business! I apologize if this question has been asked already. 

 

Instead of paying quarterly taxes, When I report my income/expenses from my side business on my taxes, does TurboTax calculate what should be owed in taxes for that year and will the IRS deduct it then?

 

Also, are there and what are the penalties for not paying Quarterly Taxes? Is the penalties both state and federal? 

 

Thanks so much!