Tax time doesn't have to be dreaded each year. Ok, filing the paperwork is almost always cumbersome whether you do it yourself or hand it over to a professional accountant. But when it comes time to pay the self-employment tax bill, you can reduce the pain.
Open a bank account specifically to hold your SE Tax contributions. At 15.3 percent, your portion of Social Security and Medicaid can add up by the time the tax deadline rolls around. Although you are already maintaining a separate account for general business funds, this extra account simply ensures there is no shortage when the IRS collects.
