How do I know if my estimated payments are correct, and am I paying on money I havent yet earned?
A Since estimated payments are due after the end of the quarter, you are paying on money you have already earned. To determine whether your payment is correct, multiply your gross earnings for the quarter by the Alliance tax rate of 2.00 percent, subtracting any withholding that was made. This amount is your estimated payment for the quarter. Because estimates are projections of your tax liability for the year, they can be adjusted up or down if your income changes.
