NICA’s tax escrow service lets independent contractors automatically set aside a chosen percentage of each payment for taxes. Funds are securely held in trust and remitted to state and federal agencies each quarter—so you never miss a deadline or face a surprise tax bill. See how easy tax automation can be with NICA.

How NICA's Tax Escrow Service Eliminates Tax Stress

The biggest financial mistake independent contractors make isn’t miscalculating taxes—it’s not filing quarterly payments at all. This often leads to overwhelming year-end tax bills, penalties, and the stress of scrambling for funds when it’s time to file. NICA’s automated tax escrow service is designed to eliminate this anxiety and put you in control.

Once you’re enrolled with NICA, activating the Tax Escrow Service is as simple as logging into your app profile and selecting the percentage you want withheld from each payment. This “set it and forget it” approach means that every time you get paid, your chosen amount is automatically deducted and deposited into a secure, purpose-driven trust account—completely separate from your accessible funds. You can adjust your withholding percentage at any time, and we recommend consulting a tax professional or referencing your last return to get it just right.

At the end of each quarter, NICA remits your withheld funds directly to the appropriate state and federal agencies on your behalf. This ensures you never miss a quarterly deadline, and you’re always ahead of your tax obligations. Unlike a savings account, where tax money can be tempting to spend, NICA’s trust structure keeps your funds protected and legally earmarked for taxes only.

The result? Immediate peace of mind. Contractors using NICA’s service report less stress, better cash flow management, and a sense of professionalism that’s recognized by contracting companies—often leading to more work and better negotiating power. With over 30 years of experience and $100 million+ submitted to the IRS, NICA’s proven system keeps you compliant, working, and worry-free.

The Financial Benefits: Cash Flow Management Made Simple

For independent contractors, unpredictable tax bills can wreak havoc on your finances—especially when quarterly payments are missed and a large lump sum is suddenly due at year’s end. NICA’s Tax Escrow Service is designed to put you back in control, transforming the way you manage your cash flow and eliminating the stress of surprise tax obligations.

With NICA, you decide exactly what percentage of each payment you want set aside for taxes—tailored to your unique income and state or federal requirements. This percentage-based withholding is fully customizable and can be adjusted at any time through the NICA app, empowering you to respond to changes in your workload or earnings. By automatically diverting your chosen amount into a secure trust account with every pay cycle, you’re building a disciplined, consistent approach to tax savings—without the temptation to dip into those funds for impulsive purchases.

The result? Predictable, manageable payments that align with your actual income, not guesswork. Instead of scrambling to come up with a large sum at tax time, you’ll find that your quarterly and annual tax obligations are already covered. This proactive approach not only protects your wallet but also provides immediate peace of mind, freeing you to focus on your business and personal goals.

Contractors who use NICA’s Tax Escrow Service consistently report a sense of relief and newfound financial stability. They’re able to plan ahead, avoid penalties, and even enhance their reputation with contracting companies—who value professionals that take their tax responsibilities seriously. In fact, being enrolled in the service can elevate your standing during pay negotiations and make you a more attractive partner for future contracts.

Compliance and Penalty Protection

Staying compliant with IRS rules is one of the biggest challenges—and stressors—for independent contractors. Missing quarterly tax payments or underestimating what you owe can lead to costly penalties, interest charges, and even IRS audits. NICA’s Tax Escrow Service is designed to eliminate these risks, providing a robust compliance framework and peace of mind for every contractor.

With NICA, your tax payments are automated and calculated based on the percentage you select, ensuring the right amount is set aside from every payment. This proactive approach means you’re always ahead of your tax obligations, dramatically reducing the risk of underpayment penalties. At the end of each quarter, NICA remits your withheld funds directly to the IRS and state agencies, guaranteeing timely and accurate payments. If you’ve ever faced IRS penalties in the past, this service is a game-changer—NICA’s system is built to prevent those issues from happening again.

Audit readiness is another key benefit. Every transaction is tracked and documented within the NICA app, giving you a clear, organized record of all tax-related activity. Should you ever face an audit, you’ll have the documentation and support you need to respond quickly and confidently. NICA’s compliance team, backed by decades of industry experience, is always available to answer questions and provide expert guidance.

Contractors who use NICA’s Tax Escrow Service consistently report relief from penalty fears and a new level of confidence in their tax compliance. Many share that the service not only protects them from costly mistakes but also enhances their reputation with contracting companies—who value professionals that take compliance seriously.

“It’s amazing looking back, we’ve submitted over $100 million to the IRS on a quarterly basis for ICs. Which I know goes a long way in helping those contractors to stay up and running every day, keep working, and not worry if they’re going to owe [a lot of] money at the end of the year.” - Thomas McGrath, Founder & President, NICA Inc.

Why Independent Contractors Choose NICA

Independent contractors across the U.S. choose NICA’s Tax Escrow Service because it delivers more than just automated tax payments—it provides trust, expertise, and a proven path to stress-free compliance.

Decades of Experience, Real Results

With over 30 years in the industry and more than $100 million successfully submitted to the IRS, NICA has a track record that speaks for itself. Contractors consistently report that the service transforms their financial lives, replacing tax-time anxiety with confidence and control. As one contractor shared, “When I found out about NICA’s escrow service, I signed up immediately. Now, I never worry about missing a payment or facing penalties - my taxes are always handled.”

Unique Features for Modern Contractors

NICA’s secure trust structure means your withheld funds are protected and used solely for tax payments—unlike a regular savings account, you can’t accidentally spend what’s meant for the IRS. The automated system adapts to your income, lets you adjust your withholding percentage at any time, and ensures every payment is tracked and documented for audit readiness.

Expert Support and Multi-State Compliance

Whether you work in one state or many, NICA’s team understands the complexities of multi-state tax rules. The platform automatically manages compliance across jurisdictions, so you never have to worry about state-by-state differences or missing a deadline. If you’ve ever faced IRS penalties or struggled with tax debt, NICA’s proactive support and notifications help you stay ahead and avoid repeat issues.

Social Proof and Trust

Contractors who use NICA’s service praise its simplicity, reliability, and the peace of mind it brings. Contracting companies also value professionals who take tax compliance seriously—enrollment in NICA’s escrow service can even enhance your reputation and negotiating power.

Getting Started: Simple Setup for Immediate Peace of Mind

Enrolling in NICA’s Tax Escrow Service is designed to be fast, intuitive, and stress-free—so you can start protecting your financial future in just a few minutes. Here’s how independent contractors can get started and experience immediate peace of mind:

Simple 3-Step Onboarding

Step 1: Access Your Profile in the NICA App
Once you’re enrolled as a contractor with NICA, simply log in to your profile or account page within the NICA app. All the information you need to enroll in the Tax Escrow Service is clearly displayed and easy to find.

Step 2: Choose Your Withholding Percentage
Navigate to the Tax Escrow Service screen and select the percentage of each payment you’d like withheld for state and/or federal taxes. Not sure what percentage to choose? NICA recommends consulting a tax professional or referencing your last tax return to estimate the right amount for your situation. You have full control and can adjust this percentage at any time as your income or tax needs change.

Step 3: Activate and Watch Your Protection Begin
Once you’ve set your withholding percentage, the service is activated immediately. You’ll see the deduction reflected in your very next payment, with funds securely diverted into a dedicated trust account for your quarterly tax obligations.

Instant Benefits and Total Transparency

• Immediate peace of mind: Know you’re staying ahead of your taxes from day one.
• Flexible adjustments: Change your withholding percentage anytime in the app.
• Clear tracking: Every deduction and payment is tracked in your account for full transparency.
• No surprises: At tax time, the money you’ve set aside is already paid in, reducing or eliminating year-end stress.

Contractors who discover and use NICA’s Tax Escrow Service consistently praise its simplicity and the relief it brings. With a near 100% adoption rate among those who try it, the service is proven to make tax compliance effortless and worry-free.

For more information or personalized support, visit NICAinc.com, call 800.551.NICA (6422), or email customerservice@nicainc.com. Start your journey today!