When you work as an independent contractor or freelancer on a 1099, taxes aren't taken out of the money you're paid. This means you're responsible for paying your federal and state taxes in full.
It can be hard to remember how much to set aside, to keep up when you're busy, or to do the mental math of how much of your checking account is safe to spend. Catch is trying to help make it easy to save money for taxes each time you get paid.
Our quick and easy tax estimator gives you a sense of roughly how much you should be setting aside from each paycheck to cover your obligation. You can adjust this based on your needs. With your Tax Withholding plan, we'll ask you to contribute a percentage from each paycheck so you don't have to think about it.
You should note, though, that this calculator is not designed to tell you your legal tax burden. We're basing the withholding off of what you estimate as your income, and a few general fields that can help determine the right tax bracket for you. We're not taking in to account a lot of the things that may change your exact tax burden. Your retirement contributions, your precise business expenses, and many other things can shift how much you owe.
Think of Catch as a quick and easy way to make sure you're prepared. You'll still need to file your taxes according to state and federal law, answering all of the tough questions that follow.
When it comes time to pay your taxes, you can make a tax payment to the IRS directly from your Tax Withholding plan in Catch.