Our most recommended Payroll app is Gusto Payroll. It offers Small Business Owners the most robust payroll software in the easiest user interface, as well as best-in-class support, of all the major 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 this 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 for you. You should consider whether hiring us or saving $50/month is more valuable. If you do DIY your payroll, you
1- Use Gusto Payroll - Gusto is easy to use and sends your payroll transactions over to your Quickbooks Online account easily.
2- Use CorpNet to Apply for and 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 less than $200, CorpNet will open your state wage withholding & state unemployment tax accounts for you.
3- Once Payroll App setup is complete - Add payroll@singletrackaccounting.com as an Accountant user of your account. We are happy to configure and map your Gusto Payroll account to your QuickBooks Online account.
4- Run your owner/officer payroll MONTHLY - All S-Corp Owners should run payroll every month on the 15th.
Once the IRS allows your business to file taxes as an S-Corp, they eliminate the 15.3% Self Employment (Social Security/Medicare) tax on your entire net profit.
The trade off is their requirement for S-Corp owners to submit your payroll taxes every single month, when they are due.
5- ALWAYS set up Fed & State payroll tax payments to be paid on MONTHLY - This will prevent late tax payments issues, "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 How do I pay myself?
See also Using Gusto to pay 1099 Contractors
See also How do payroll taxes work?
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