Now you have to pay the owners. Business owners can make "draws"
of any amount they want. However, they have to pay taxes on all their net profits each quarter - regardless of whether they withdrew the money. There is also a 15.3% social security tax that is added each quarter.
How can you make sure you'll have enough money at quarter-end to pay taxes? One way is to use the "gross-up" feature of a payroll calculator.
Because most sole proprietors don't pay themselves regularly, you need to take the amount that you want to withdraw for yourself (the after-tax amount) and divide it by (5 times the number of weeks the pay is for).