We take into consideration factors like your state of resident, your filing status, income, and expenses to determine how much you owe to the IRS.
For New WorkMade Users:
we'll get you caught up by looking at external income & expenses. In order to get your overall effective tax rate, we gather the following information.
Your total income for any salaried positions you, and or your spouse may have if applicable
Any freelance income you've made to date
Any freelance expenses you have to date
Salaried Income + Freelance Income - Potential Write-offs (Business expenses for your freelance income) is how we figure out your tax basis. As this number increases, you go into higher tax brackets. We break down this complicated math into one simple number for you to know - the effective tax rate.
Any Freelance Income you have to date will be multiplied this number and we'll get you caught up on Day 1 to have a fresh start with Workmade.
For Existing WorkMade Users:
If you don't have the money to pay on Day 1 - that's okay! We'll keep track and encourage you to get caught up when you have enough money.
Going forward, we'll continue to set aside any Income you route to Workmade at your effective tax rate. This helps ensure that you're all caught up each time it's time to make payments. That way you always have enough to set aside.
In addition, as you spend money on your business, WorkMade identifies and classifies tax-deductible expenses and contributions to lower your overall tax bill.
In other words, you earn and spend on your business as normal and we take care of everything else!
Note: Each individual and business tax situation is different and unique so WorkMade does not provide specific tax advice, only supplying general information based on information published by various taxing authorities, which may change over time.