Why do I set my tax withholding rules as percentages?

A percentage rule fluctuates with you and allows you to contribute a lot when you're flush and just a little when you’re tight.

Your business income likely varies by week, month, and client. We’ve found that the best way to make sure you set aside the right amount for taxes is to set aside a percent of every payment vs. a dollar amount. A percentage rule fluctuates with you and allows you to contribute a lot when you're flush and just a little when you’re tight.