If you're juggling a 9-5 job with a creative side gig, you’re probably focused on growing your brand and getting your business off the ground. But here’s something many creatives overlook—tax withholdings. It’s one of those things that can easily slip through the cracks, especially if you’re just starting to dip your toes into business.

Here’s what you need to know: Tax withholdings are the amount your employer takes out of your paycheck to cover federal, state, and local taxes. This is automatic, and it helps ensure you don’t end up with a big tax bill at the end of the year.

But when you're running a side business, you're in charge of your own taxes. That means the income you make outside of your 9-5 job needs to be handled separately. If you don't set aside a portion of your earnings for taxes, you’ll end up paying for it later when tax season rolls around. [Check out my blog article on handling quarterly taxes for more on this.]

A simple way to stay on top of this is by setting aside 25-30% of your side income for taxes. You can also make quarterly estimated payments to the IRS to avoid a lump sum at the end of the year. This will keep things manageable and prevent any surprises.

If you need accounting and tax help for yourself or your business, we’ve got you covered. Thanks to our strategic alliance with Carson Creative Solutions, led by accounting and tax pro - Asia Hill, we’ve built the Tax Ready by Design™program to help creatives stay compliant and financially sound.

Need guidance? Reach out, and let’s talk.

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