Author Topic: DIY S Corp??? Solo401k, payroll, tax returns  (Read 331 times)

TheAnonOne

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DIY S Corp??? Solo401k, payroll, tax returns
« on: October 30, 2018, 12:07:43 PM »
Hello, I am a single employee S corp (just starting)

Do I need a CPA to do the whole payroll, Solo-401k, and taxes?

Or are these things easy enough to use online services for? AKA: ADP for payroll, turbotax for S Corp taxes and Vanguard for Solo-401??

Wondering if I run the risk of missing anything by not hiring someone. From what it looks like, hiring someone could be anywhere from $1,200 to $4,000 a year.

Much Fishing to Do

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Re: DIY S Corp??? Solo401k, payroll, tax returns
« Reply #1 on: October 31, 2018, 06:13:24 AM »
I think its worth paying someone to do the taxes and payroll the first year at least.  After that if your business books are fairly simple and you decide you have the time you can take over and use what they did as a guide.  That was my initial plan but I then continued using the professional help as my business was continuously busy and growing and lucrative enough that it was a better use of my time focusing on the business and not this stuff even though I do understand taxes fairly well (I found a somewhat costly mistake my preparer made one year had it not been corrected, so in the end it is on you to review)

For the solo 401k it is so simple thru Vanguard, they show you the initial paperwork and after that I would log onto the 401k site quarterly to make the contributions.  I even made a mistake one time with a contribution and their phone helpdesk figured out a fix pretty easily.  The only other thing needed is to file the 5500 (very simple) annually, and thats only required after your balance hits $250k, so not something you'll have to deal with for a while.
« Last Edit: October 31, 2018, 06:14:59 AM by Much Fishing to Do »

Cpa Cat

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Re: DIY S Corp??? Solo401k, payroll, tax returns
« Reply #2 on: October 31, 2018, 07:04:07 AM »
I recommend Patriot Software for easy and affordable full-service payroll. They basically do everything for you. You just run your payroll - you don't even have to approve forms or anything or click buttons to make tax payments. If you need to file 1099s for contractors, then I've heard good things from clients who use Gusto for both payroll and contractors. A little pricey, but a very pretty and easy to use software.

I recommend Vanguard or Fidelity DIY for the Solo401(k). As a CPA, I don't do retirement accounts, and I've found very few financial advisors who have a strong grasp or great product for Solo 401(k)s.

I don't recommend TurboTax or DIY for the S-Corp tax return. I don't consider that a DIY job and TurboTax doesn't have tax advice support on that product, just basic tech support. Try putting the job out on Upwork for an EA or CPA to do - that should get you a competitive price on tax prep, though you'll have to include a consultation in your job bid request if you want real advice.

TheAnonOne

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Re: DIY S Corp??? Solo401k, payroll, tax returns
« Reply #3 on: October 31, 2018, 08:09:11 AM »
I think I am going to use the cpa office near my house. He wants to charge 150 bucks a quarter + 300 a year to file the returns.

Seems alright to me. He said he would show me how to use quickbooks online for my own bookkeeping as well.

Not sure if this is a good deal or not, I stand to save some 5 figure amount by going corp to corp so in that context it seems cheap.

CareCPA

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Re: DIY S Corp??? Solo401k, payroll, tax returns
« Reply #4 on: October 31, 2018, 10:39:27 AM »
I think I am going to use the cpa office near my house. He wants to charge 150 bucks a quarter + 300 a year to file the returns.

Seems alright to me. He said he would show me how to use quickbooks online for my own bookkeeping as well.

Not sure if this is a good deal or not, I stand to save some 5 figure amount by going corp to corp so in that context it seems cheap.
Make sure that includes income tax forms, and not just payroll forms. That is pretty cheap for an S Corp return.
As noted earlier, I would not DIY an S Corp income tax return (note my bias).

I also second the suggestion of Vanguard or Fidelity for the retirement account. I always point clients to their account provider for calculations of how much they can actually contribute based on their profitability. While some accountants will calculate this for you, I think it's better left to the financial firms.

SeattleCPA

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Re: DIY S Corp??? Solo401k, payroll, tax returns
« Reply #5 on: October 31, 2018, 04:56:17 PM »
Hello, I am a single employee S corp (just starting)

Do I need a CPA to do the whole payroll, Solo-401k, and taxes?

Or are these things easy enough to use online services for? AKA: ADP for payroll, turbotax for S Corp taxes and Vanguard for Solo-401??

Wondering if I run the risk of missing anything by not hiring someone. From what it looks like, hiring someone could be anywhere from $1,200 to $4,000 a year.

I think you use some of your hopefully substantial S corporation tax savings to pay for outsourced payroll and a CPA or EA prepared 1120S.

If you can't easily make the numbers work--for example, if you can't use $2K of your $8K of your savings--you probably shouldn't elect S status.

Doing a corporate tax return is not like picking an asset allocation formula and then "following" the recipe.