Still, “any high-net-worth employee or any business owner will be under-withheld if they think the withholding tables will cover their tax bill,” said Jim Erickson, a CPA/PFS in Bellevue, Wash.
Assume taxes that your client must pay are liquid and earning about 1 percent in a savings or checking account. But the interest charge on underpaid taxes is 4 percent. “Better to pay extra [in withholdings] for insurance,” Morris said.