The only Payroll app our program supports is Gusto Payroll. It is the best of all the payroll apps!
BONUS! use Gusto to also pay 1099 vendors by Direct Deposit > Gusto will collect vendor W-9s AND send 1099s every January for you!
If you hire Singletrack Accounting for your payroll we will do all the work for you at $100/mo (+ $6/active payee)
If you do-it-yourself You will do everything; you will setup the software, you will enter your Employees, you will run ongoing monthly Officer Payrolls, you will open state wage withholding & state unemployment tax accounts, and you will deal with any payroll tax notices you receive.
Use our referral link to receive a $100 Visa Gift Card referral reward https://gusto.com/r/sdYPW
NOTE if you do not understand how payroll works, this could be very challenging and you will only save $50/month, If this is you, consider hiring us
1- Use your $100 gift card to hire CorpNet to open State Wage Withholding and State Unemployment Tax accounts - This is the hardest part of setup BUT it does not have to be.
We will connect you with our CorpNet rep and for a one time fee, usually around $200-$300 they will do this for you...
3- Once the Gusto Payroll App setup is complete - Add payroll@singletrackaccounting.com as an Accountant user of your account. We will configure and map your Gusto Payroll account to your accounting software.
4- Run your owner/officer payroll MONTHLY on the 15th - All S-Corp Owners should run payroll every month on the 15th.
Remember...once the IRS allows your business to file taxes as an S-Corp, they eliminate the 15.3% Self Employment tax (Social Security/Medicare) assessed on your entire net profit. Instead, they only assess Social Security & Medicare taxes only on the dollars your run through payroll....this is why payroll is required, it is NOT an option for s-corp owners (and why we will recommend the absolute lowest salary possible).
5- ALWAYS schedule Fed & State payroll tax payments to be paid on MONTHLY - This will prevent late tax payment issues, it will "normalize" monthly cash flow, and make future Tax Planning projections far more accurate. More importantly, the IRS wants your income taxes to be paid during the quarter in which your income was earned (and they are stepping up their enforcement of this in 2023)
6- ALWAYS setup overdraft protection on your business checking account - NSF for rejected payroll taxes can be painful.
See also Using Gusto to pay 1099 Contractors
See also How do payroll taxes work?
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