Switching from 1099 contractor to FTE

[MarkK01757]

Hi. I used to be a 1099 contractor and paid self-employment taxes. As of 1/7/2021, I am an employee paid salary with W-2. Do I need to pay quarterly taxes or is the deduction from my pay check sufficient for 2021?

[carolineb]

Hi Mark, congratulations on your new job! Since you began working in 2021, you had submitted a new 2021 W-4 to your employer in order to have federal, SS and Medicare taxes withheld from your pay. In most instances this is sufficient to cover any tax liability that you may have on your income, unless you have other income such as dividends or capital gains on which no taxes are being withheld. Since we are nearing the end of the year, you may want to check your last pay stub to see if your federal income tax withheld is at least 10% of your year to date pay. If not, you can opt to make an estimated payment (4th quarter estimated payment is due by Jan 18, 2022).