do you guys do your own payroll, or do you have a payroll service?

Status
Not open for further replies.
gdubs12345

gdubs12345

New member
Oct 2, 2006
1,712
9
0
I just got set up with a payroll service, basically to pay myself for tax reasons. It was a little pricier than i was expecting. Like $50 per payment.

Ive heard you can just do it yourself. What do you guys do?
 


Fuck payroll, take owner's draws from your corp account. No need to pay yourself W2.
 
elgordo said:
Fuck payroll, take owner's draws from your corp account. No need to pay yourself W2.
Click to expand...

Yeah, that's some good advice...</sarcasm>

I use paycycle, it's like $40/month, but once you set it up it handles all the tax stuff pretty easily. I use it for myself and one full time employee.
 
gdubs12345 said:
I just got set up with a payroll service, basically to pay myself for tax reasons. It was a little pricier than i was expecting. Like $50 per payment.

Ive heard you can just do it yourself. What do you guys do?
Click to expand...

Let me get this straight. You pay someone to help you pay yourself? Do you have other employees?
 
Bank of America has free payroll service if all your employees use direct deposit to Bank of America accounts.
 
S-dog said:
Yeah, that's some good advice...</sarcasm>
Click to expand...


There's nothing illegal or wrong with taking draws from a corp account unless you have employees. Many folks who are essentially one-man S-corps do this.

The only drawback is that you won't be paying in to Social Security and FICA. But will that be there when you retire anyhow..
 
I use ADP for payroll. Otherwise I write checks only to corp contractors. My CPA is a wiz at figuring it all out and making it happen.
 
sinewave said:
I use ADP for payroll. Otherwise I write checks only to corp contractors. My CPA is a wiz at figuring it all out and making it happen.
Click to expand...

ADP is who i got setup with today. Ive got a great accountant, that saved me alot compared to my old cpa last year. So i trust him, but ive heard that you can just do it with quickbooks.
I hate dealing with taxes, but if its not to hard i would rather save myself $500/yr
 
elgordo said:
Fuck payroll, take owner's draws from your corp account. No need to pay yourself W2.
Click to expand...

I could be wrong, but this could be an issue when you are expected to draw a salary, especially depending on your corp structure and number of employees ( if you are the only employee you are still expected to draw a salary),etc. I kinda do a combination of things.
 
elgordo said:
There's nothing illegal or wrong with taking draws from a corp account unless you have employees. Many folks who are essentially one-man S-corps do this.

The only drawback is that you won't be paying in to Social Security and FICA. But will that be there when you retire anyhow..
Click to expand...

THIS IS VERY, VERY, VERY WRONG.

If you are the sole owner of an S-Corp you have three roles to start with:

President/CEO
Treasurer
Secretary

On top of that if you are doing ANY work for the corporation it is expected (legally) by the IRS that you will be paid a salary by the corporation as a W2 employee. The salary must match (roughly) what you would pay on the open market for a full-time employee of the same experience, geography, and skill set.

I want to be very clear on this - what you are doing is considered tax evasion. I'm not going to tell you what to do but I sure would NOT post about it on a public forum. If you are doing this you can be sent to prison for it.

If you have done this in error you need a tax attorney immediately to remedy the situation. In particular you need to re-file all tax years this happened as well as re-do all distributions, draws, etc, and hope for the best.

There was some allowance for this sort of thing back in the late 90's with LLC's but most of those loopholes have been closed.
 
Now, on to the payroll service.

Many people do it themselves. You can quite easily do it with off-the-shelf accounting software like Quickbooks, etc.

There are two compelling reasons to outsource it though.

1.) Is the time it takes you to do this worth more than the $50?

2.) Legally you have an objective person calculating taxes. Errors to taxes would be considered errors and be subject to less scrutiny for malicious intent.
 
elgordo said:
There's nothing illegal or wrong with taking draws from a corp account unless you have employees. Many folks who are essentially one-man S-corps do this.

The only drawback is that you won't be paying in to Social Security and FICA. But will that be there when you retire anyhow..
Click to expand...


Anyone have more info on this? This would save me a lot of trouble if true.
 
Status
Not open for further replies.
Top Bottom