Author Topic: Who does your payroll (Read 10552 times)

FIRE2022 · « **on:** February 15, 2016, 11:35:05 AM »

I am in software development. Recently decided to quit my regular W2 job and start consulting full time. Already lined up my first 1 year contract. I will be working through my own company (S-Corp) that I set up and will be paying myself a W2 salary from the procceds of the company. I start working at the new company in 2 weeks and need to figure out who to use for payroll services. Can anyone here recommend a good payroll company? I will be the only employee of the company for now. Also, I am comtemplating hiring a CPA to do my taxes. Will the CPA also handle the payroll portion? What other things do I need to keep in mind while running my company? Thanks for all your help.

katsiki · « **Reply #1 on:** February 15, 2016, 11:41:30 AM »

My employer (small business) has used surepayroll.com for many years. It looks like they have an Officer Only / S-Corp product.

Altons Bobs · « **Reply #2 on:** February 15, 2016, 02:07:03 PM »

Some people don't like BofA, but we have no problems with them. They offer free payroll for up to 4 employees I think.

You need to keep all receipts, keep track of all expenses, mileage, billing, etc. We've been using a CPA for both my business and personal for years now, and the amount of time he has been able to save us is worth more than what we pay him.

projekt · « **Reply #3 on:** February 15, 2016, 02:13:01 PM »

Payroll is usually an add-on service from CPAs, not usually included. They are often reselling another payroll service.

I use SurePayroll for my business and it's worked alright, but it can be hard to figure out how to do things. As they have been updating the interface, it's been getting easier.

I've heard good things about Gusto (though their previous name, ZenPayroll, was better).

Look into setting up the Vanguard solo 401k. Your payroll system should be able to handle the tax details of your contributions.

protostache · « **Reply #4 on:** February 15, 2016, 02:14:30 PM »

I use Gusto (used to be ZenPayroll) and have zero bad things to say about them. Michigan changed their forms mid-year last year and Gusto worked with the state to get it all fixed and just let me know once in awhile what was going on. Well worth the $30/mo I'm paying them.

If you sign up with this link we both get a $100 Amazon gift card, but I'll be happy even if you don't :)

https://gusto.com/r/VhY2M/?utm_source=erother

Papa bear · « **Reply #5 on:** February 15, 2016, 03:08:58 PM »

Paychex, but I think you may save the most with quickbooks doing it yourself

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headachemustache · « **Reply #6 on:** February 15, 2016, 03:52:31 PM »

When I was researching low cost options for payroll, I found these two options:

(1)ePaycheck software. $89 for each tax year, no monthly fees
http://www.halfpricesoft.com/index.asp

and

(2) Patriot Software, basic payroll for $10/month, or full-service payroll for $25/month.
https://www.patriotsoftware.com/payroll/

Since I didn't end up needing payroll, I didn't sign up and therefore can't comment on/compare these for you. I did find that Patriot seemed to have good customer service and offered some handholding to get started.

BlueHouse · « **Reply #7 on:** February 15, 2016, 06:50:44 PM »

I use Paychex. It's not inexpensive, but they deal with a lot of headaches that I don't want to deal with.

I would like to switch to Dominion Payroll but I can't do it just yet.

kudy · « **Reply #8 on:** February 15, 2016, 06:59:03 PM »

I use Wave for my accounting - if I were to switch from a sole proprietor to an S corp, I'd probably check out their payroll offering. If you use Quickbooks for accounting, I think they also have a payroll add-on feature that would probably be pretty easy to DIY.

coolistdude · « **Reply #9 on:** February 15, 2016, 07:04:37 PM »

Quote from: Papa bear on February 15, 2016, 03:08:58 PM

Paychex, but I think you may save the most with quickbooks doing it yourself

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I managed a company that switched from Paychex to Quickbooks payroll to save money. It was an interesting transition. I live in California so there were many employer taxes I discovered. The frustrating part about Quickbooks is getting advice from Indians (not Indiana or native Americans. Indians) about US tax code. Usually I got stuck into an endless loop of transfers until I Googled long enough to feel like I understood the deposits/forms/taxes. Intuits forums were a nightmare, usually with dead Google links or unspecific information. We had 5+- employees. If you just want it to work and get nickled and dimed, go with Paychex.

We switched from Paychex because they failed to keep a pay-cut's effect. An employee got demoted and got a lower wage due to performance issues. I called up Paychex and made the change but it only was on for one or two paychecks. They didn't understand why I was so pissed when the employee received about 4 paychecks at their old, higher wage before we noticed. After we went with Quickbooks, Paychex called back to get my business and had nothing to say to me when I told them why we left. They cost us hundreds of dollars and barely said "oh sorry for failing." At least they were simple when things worked.

Larabeth · « **Reply #10 on:** February 15, 2016, 07:08:07 PM »

Keep us updated on who you choose/how it goes! I'm about to start an LLC and was considering an S-corp, but didn't know if it would be worth it to start out.

Rubic · « **Reply #11 on:** February 15, 2016, 07:14:48 PM »

We use ADP. They finally removed the IE browser requirement. Works great with multi-state situations.

If not them, then probably we'd probably use PayChex.

coppertop · « **Reply #12 on:** February 16, 2016, 07:31:00 AM »

I laughed when I read the question in the subject line because *I* do the payroll for 55+ people here. I am recommending we outsource payroll, but old habits die hard here. I do use QuickBooks payroll, but everything is becoming so complicated with Obamacare and Sec. 125 etc. that it is getting beyond my ability to know all of the ins and outs of preparing payroll, even with the dubious 'help' that Intuit provides.

ThatGuy701 · « **Reply #13 on:** February 16, 2016, 07:49:38 AM »

Check out http://www.a-onebusiness.com/.
They have been very helpful and made the process easy!
Their customer service has been amazing to work with and I would highly recommend them.

Vilgan · « **Reply #14 on:** February 16, 2016, 11:41:27 AM »

I explored a few options for payroll when we switched to an s-corp this year. ADP, Gusto, the Intuit offering, a few others.

We went with Gusto because:

1) They had a free trial. And it was actually a free trial unlike ADP's interpretation of a free trial
2) Interface was clean and easy to use
3) They were cheaper than a lot of other options
4) They were all over the various things we needed to do with having employees in multiple states and didn't charge extra for that
5) The experience during the trial was a good one. Customer service responded quickly and were clearly native english speakers.
6) They integrate with Freshbooks.

If we used Quickbooks we might have used the Intuit option. I also looked at surepayroll and some others but was more impressed with Gusto's interface.

frompa · « **Reply #15 on:** February 17, 2016, 06:22:07 AM »

FIRE2022, if you are the only employee, you can probably do it yourself. I do my own payroll for two employees. And I've walked a few people through setting up doing their own. Probably your best bet is to meet with a knowledgable accountant to get you set up, so that you know what taxes you have to withhold and in what amount, which you pay as an employer, the dates all are due etc. etc. For my small size operation, I need only file all returns quarterly. It takes me about five minutes to do the biweekly payroll. I have the quarterly returns down to two hours a quarter, because I know what I need to track for each pay period and do it accordingly. If you are averse to number crunching, have someone else do it for you; but if you're not, it's not all that complicated. Good luck.

protostache · « **Reply #16 on:** February 17, 2016, 06:44:59 AM »

Quote from: frompa on February 17, 2016, 06:22:07 AM

FIRE2022, if you are the only employee, you can probably do it yourself. I do my own payroll for two employees. And I've walked a few people through setting up doing their own. Probably your best bet is to meet with a knowledgable accountant to get you set up, so that you know what taxes you have to withhold and in what amount, which you pay as an employer, the dates all are due etc. etc. For my small size operation, I need only file all returns quarterly. It takes me about five minutes to do the biweekly payroll. I have the quarterly returns down to two hours a quarter, because I know what I need to track for each pay period and do it accordingly. If you are averse to number crunching, have someone else do it for you; but if you're not, it's not all that complicated. Good luck.

Doing your own payroll is penny wise and pound foolish, in my opinion. Gusto for two people costs $41 per month or $123 per quarter. Your figures say you spend about two and a half hours doing payroll every quarter. That means you value your time as a business owner at less than $50 per hour.

Doing it yourself also means you have to coordinate payments, pay postage, make sure everything is correct, and if you mess up any little thing you're on the hook for penalties, not the least of which is the additional time wasted dealing with the mess. Oh, your withholding is off by $5? That's two more hours wasted on the phone and even more postage going back and forth with the taxing authorities.

Part of running a business is leveraging money and other people's time to make more money. Payroll is one of those things like business taxes that seems like it's cost effective to do on your own right up until something goes wrong, and then your savings go down the tubes.

Vilgan · « **Reply #17 on:** February 17, 2016, 08:49:34 AM »

Quote from: protostache on February 17, 2016, 06:44:59 AM

Quote from: frompa on February 17, 2016, 06:22:07 AM
FIRE2022, if you are the only employee, you can probably do it yourself. I do my own payroll for two employees. And I've walked a few people through setting up doing their own. Probably your best bet is to meet with a knowledgable accountant to get you set up, so that you know what taxes you have to withhold and in what amount, which you pay as an employer, the dates all are due etc. etc. For my small size operation, I need only file all returns quarterly. It takes me about five minutes to do the biweekly payroll. I have the quarterly returns down to two hours a quarter, because I know what I need to track for each pay period and do it accordingly. If you are averse to number crunching, have someone else do it for you; but if you're not, it's not all that complicated. Good luck.

Doing your own payroll is penny wise and pound foolish, in my opinion. Gusto for two people costs $41 per month or $123 per quarter. Your figures say you spend about two and a half hours doing payroll every quarter. That means you value your time as a business owner at less than $50 per hour.

Doing it yourself also means you have to coordinate payments, pay postage, make sure everything is correct, and if you mess up any little thing you're on the hook for penalties, not the least of which is the additional time wasted dealing with the mess. Oh, your withholding is off by $5? That's two more hours wasted on the phone and even more postage going back and forth with the taxing authorities.

Part of running a business is leveraging money and other people's time to make more money. Payroll is one of those things like business taxes that seems like it's cost effective to do on your own right up until something goes wrong, and then your savings go down the tubes.

Yeah, I definitely agree with this. I even do my own business taxes but don't do payroll because its more of a hassle than its worth and there seem to be a lot of small details that are easy to miss. Business taxes seems like understanding the small details has value whereas payroll just seems like a lot of small details/busy work and I have better ways to spend my time.

FIRE2022 · « **Reply #18 on:** February 17, 2016, 10:03:28 AM »

Quote from: protostache on February 15, 2016, 02:14:30 PM

I use Gusto (used to be ZenPayroll) and have zero bad things to say about them. Michigan changed their forms mid-year last year and Gusto worked with the state to get it all fixed and just let me know once in awhile what was going on. Well worth the $30/mo I'm paying them.

If you sign up with this link we both get a $100 Amazon gift card, but I'll be happy even if you don't :)

https://gusto.com/r/VhY2M/?utm_source=erother

The Gusto interface looks fairly easy to use. And the cost is in line with what I've budgeted ($35 for one employee). I'll be sure to use your link if I decide to go with them.

FIRE2022 · « **Reply #19 on:** February 17, 2016, 10:13:20 AM »

Quote from: frompa on February 17, 2016, 06:22:07 AM

FIRE2022, if you are the only employee, you can probably do it yourself. I do my own payroll for two employees. And I've walked a few people through setting up doing their own. Probably your best bet is to meet with a knowledgable accountant to get you set up, so that you know what taxes you have to withhold and in what amount, which you pay as an employer, the dates all are due etc. etc. For my small size operation, I need only file all returns quarterly. It takes me about five minutes to do the biweekly payroll. I have the quarterly returns down to two hours a quarter, because I know what I need to track for each pay period and do it accordingly. If you are averse to number crunching, have someone else do it for you; but if you're not, it's not all that complicated. Good luck.

I am a do it yourself kind of guy, so that is interesting. 5 mins every two weeks doesn't sound bad at all. Do you use any software to assist with doing the payroll and filing the quarterly taxes? I bet there are a few youtube videos out there showing how to set up payroll. My wife is a CPA, but she has zero experience in payroll and s-corp taxes. She does state and local taxes for multinationals. But she could help with some research.

lemonlyman · « **Reply #20 on:** February 17, 2016, 11:51:52 AM »

I use Quickbooks Payroll Online, but I'm moving the company to Paylocity in a couple of months. We've gone from 35 employees to 105 in the last 3 years. Paylocity adds more of an HR suite. To help with tax forms, something like Gusto is probably a good idea. It's cheap.

Axecleaver · « **Reply #21 on:** February 17, 2016, 12:27:30 PM »

I just went through this payroll service shopping exercise. I chose SurePayroll, which is owned by Paychex now. Paychex got tired of losing business to them and just bought them. They had the best fees and customer service is 100% in the US. They did a good job with onboarding me and helping me through my first payroll cycle. I did have some minor hassles getting them to accept my company unemployment ID and tax ID, but I was able to work through it in time.

TVRodriguez · « **Reply #22 on:** February 17, 2016, 01:01:23 PM »

I have my own law practice with two employees (it's me and an assistant).

I use Quickbooks for my bookkeeping and my payroll. They do direct deposit for me. I think I pay $12.95/month for the quickbooks and $42/month for the payroll.

I log on weekly to run payroll and it takes a minute or two. Another minute or two to match up and accept new expense or income entries and the bookkeeping is done, too. Once a month I go onto eftps.gov and pay the payroll taxes and withholding taxes, which draw from my business account. Similar for any state unemployment taxes--minutes here and there. I could pay quickbooks/intuit to do this for me, but it is simple so I do it myself.

I have a friend who just started her own law practice. She found this to be a bit more than she wanted to do, and she hired a CPA to handle it all for her. To each her own.

Vilgan · « **Reply #23 on:** February 17, 2016, 01:37:14 PM »

If interested in doing it yourself, I'd still recommend using Gusto or Paychex or some similar service for a month or two to understand all the payments involved then take it over for yourself. That way you don't miss something. There can be surprising locality things that are nontrivial to find on your own.

mucchad · « **Reply #24 on:** February 17, 2016, 05:46:12 PM »

Quote from: FIRE2022 on February 17, 2016, 10:13:20 AM

Quote from: frompa on February 17, 2016, 06:22:07 AM
FIRE2022, if you are the only employee, you can probably do it yourself. I do my own payroll for two employees. And I've walked a few people through setting up doing their own. Probably your best bet is to meet with a knowledgable accountant to get you set up, so that you know what taxes you have to withhold and in what amount, which you pay as an employer, the dates all are due etc. etc. For my small size operation, I need only file all returns quarterly. It takes me about five minutes to do the biweekly payroll. I have the quarterly returns down to two hours a quarter, because I know what I need to track for each pay period and do it accordingly. If you are averse to number crunching, have someone else do it for you; but if you're not, it's not all that complicated. Good luck.

I am a do it yourself kind of guy, so that is interesting. 5 mins every two weeks doesn't sound bad at all. Do you use any software to assist with doing the payroll and filing the quarterly taxes? I bet there are a few youtube videos out there showing how to set up payroll. My wife is a CPA, but she has zero experience in payroll and s-corp taxes. She does state and local taxes for multinationals. But she could help with some research.

Posting to follow

supomglol · « **Reply #25 on:** February 18, 2016, 10:36:47 AM »

We use Gusto now, transitioned away from Heartland at the end of 2015.
Good 100% online interface and helpful customer service. $30/month.

mamagoose · « **Reply #26 on:** February 18, 2016, 10:42:18 AM »

I do my own, it takes an hour a month (including the drive to the bank). That's why I only do it once a month, because it takes a whole hour lol I meet with my accountant quarterly and she adjusts the amounts based on earnings, so I just plug in her numbers into EFTPS, write my own checks, do my Vanguard 401K contribution, easy peasy.

FIRE2022 · « **Reply #27 on:** February 19, 2016, 09:15:05 AM »

Quote from: Vilgan on February 17, 2016, 01:37:14 PM

If interested in doing it yourself, I'd still recommend using Gusto or Paychex or some similar service for a month or two to understand all the payments involved then take it over for yourself. That way you don't miss something. There can be surprising locality things that are nontrivial to find on your own.

This is great advice. Right now, I am leaning towards Gusto. Will probably sign up with them this weekend. I spoke with a CPA yesterday and his advice was to outsource the payroll portion to a company such as Gusto, since it would not be cost effective to have a CPA handle the payroll for a one person company.

Dillydally · « **Reply #28 on:** February 21, 2016, 10:23:55 AM »

Does anyone have any experience with payroll through square? I do not have any experience with the other systems and I just started using square, so I can't compare. The cost is $20 a month + $5 per each employee. I would love to hear any feedback as to why it is good / not good.

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Inevitable · « **Reply #29 on:** February 21, 2016, 03:11:59 PM »

I work for a company that does payroll and accounting. I do the IT there, but if you're interested in talking to our accounting and payroll guys shoot me a PM and they can discuss it with you. It's a small business, so we cater to other small businesses. Just thought I'd share.

Prepube · « **Reply #30 on:** February 21, 2016, 11:28:19 PM »

I had a cpa set it up originally, and have done payroll for 10-15 employees for the last 15 years using Quickbooks. I had no accounting experience and no HR or payroll experience, but find it so easy to do that I could not imagine paying someone else for this. Quarterly reports are remarkably easy. I have the accountant check my work twice a year, and she does the taxes for tha s-Corp and personal. I spend about 1500 per year between her and QB. I wouldn't even consider changing anything... I save questions I have for my mid year meeting with the accountant. She makes changes to the books if needed, and it's all exceptionally easy. Don't pay someone to do those quarterly forms more than once. You can do them using the cpa's as a template. Smartest decision I ever made was to try and understand where every one of my company's dollars were going, and to do that you must do it yourself, at least a few times so that you know when to ask questions later.

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Author Topic: Who does your payroll (Read 10552 times)