Payroll services are critical to most businesses. For owner-operated S-Corporations, payroll is required for IRS Compliance. While growing firms with many employees know the importance of a good payroll service, small business owners that want to avoid tax headaches should choose an easy to use software package. For small businesses, the cloud drastically simplifies the process. Our preferred Payroll Company is Gusto. We can work with your existing Payroll System, can convert your payroll system to Gusto, and for new businesses work to set you up with Gusto.
Who needs to run payroll?
Owner Operated S-Corporations need to run payroll by IRS guidelines. In an S-Corporation your status as “employee/officer” and “shareholder” are distinct and your working within the company must be tied to payroll. If your LLC has elected to take S-Corporation tax structure (which is very common), you must also run payroll for compliance. If you have other structures, including sole proprietorships, partnerships/LLCs, and C-Corporations, you need to run payroll when you have outside employees, whether full-time or part-time. While you can do the paperwork by hand, the penalties and fines for screwing up are unreasonably large, so it’s important to use an affordable payroll service.
The IRS is cracking down on the use of 1099 Payments (formerly 1099-Misc, now 1099-NEC) payments to defacto employees, so if you are concerned if your team is contractors or employees, we can discuss. Failure to comply with IRS and State Employee guidelines is one of our leading sources for IRS Resolution Projects. We’ll help you setup your payroll service and stay in compliance.
Who cannot run payroll?
If you are a sole proprietorship or partnership, or an LLC being taxed as a partnership, your owner payments may not be run through payroll, owner profits are subject to self employment tax. You may still run payroll for your employees, and your retirement and health care benefits packages may be tied to the payroll system.
Gusto Payroll Services and System
Our preferred Cloud Payroll service, Gusto, can simplify your Payroll life and handle basic HR needs for most businesses. Easy integrations with Quickbooks Online and Xero keep your systems up to date, and Gusto will handle your quarterly and annual filings with the appropriate tax authorities. We prefer Gusto’s payroll service, because it’s strong user-interface makes it easy for business owners to setup and it’s “set-and-forget” most prevents the chronic forgetting to confirm problem that causes non-compliance. Gusto allows employees to “self onboard” and obtain their tax documents without your involvement… you’ll never spend April 14th re-sending W-2s to employees that quit over a year ago.
Other Payroll Services and Systems
We can work with your existing payroll system if your HR Process is already working. We have clients that are happy and successfully using Intuit’s Quickbooks Payroll Service, JustWorks, as well as legacy payroll systems like ADP and Payroll Systems provided by national and regional banks like Bank of America, Wells Fargo, and Suntrust.