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One payroll per year

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  • Avatar robaxin 
    Participant
    Status: Physician
    Posts: 33
    Joined: 09/10/2018
    Earnest refinancing bonus

    This year we setup a husband/wife S Corp and need to run one pay roll for the year.  My CPA does not do payroll.  All of the companies I have read charge a per month fee and appear to be more geared towards monthly payrolls.  Any recommendations on who can assist with just ONE for the whole year?

    #237790 Reply
    Avatar HumbleInvestor 
    Participant
    Status: Physician, Small Business Owner
    Posts: 182
    Joined: 12/28/2016

    Why not get a payroll software and do it yourself?

    #237795 Reply
    Avatar DavidGlennCPA 
    Participant
    Status: Accountant
    Posts: 33
    Joined: 06/12/2019

    Even though you want to do just one payroll per year you still need to file Form 941, your state’s withholding return, and your state’s unemployment tax return (if applicable to you) each quarter.

    You could buy some desktop software for less than a payroll service but you’d still need a way to file the W-2s electronically and to register for EFTPS to make the tax payments.  Plus you need to figure out how to file and pay your state’s withholding and unemployment tax.  Here’s one to check out: https://www.taxtools.com/products_af.aspx

    Payroll seems simple on the surface but when it comes to actually doing it, it’s surprisingly complicated.  Paying a monthly fee somewhere actually ends up being a good value for all that’s involved.

    I use Gusto for my payroll and for my clients’ payroll.  For you and your wife to be on payroll you’d pay $51/month which I think is a good value when you consider all that actually goes into staying compliant.  You don’t need to run a payroll each month if you don’t want to either.

    The penalties associated with doing payroll wrong outweigh the costs of a monthly service.

    David Glenn, CPA | Glenn Advisory
    https://www.taxcpafordoctors.com | (808) 321-5664

    #237797 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7958
    Joined: 01/09/2016

    I think you may be asking about a one-time need, payroll at the eoy and then traditional monthly beginning next year. Is that correct? If so, just sign up for a payroll service in December and then transition to monthly in 2020. I heartily agree with @davidglenncpa that this is not an area where you want to pinch pennies or take shortcuts. The penalties for noncompliance (not to mention the headaches) are severe. As a HIP, you can find plenty of other ways to cut back on expenses besides professional services.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #237823 Reply
    Liked by adventure, Zaphod
    Avatar robaxin 
    Participant
    Status: Physician
    Posts: 33
    Joined: 09/10/2018

    Why not get a payroll software and do it yourself?

    Click to expand…

    Any recommendations?

    #237874 Reply
    Avatar robaxin 
    Participant
    Status: Physician
    Posts: 33
    Joined: 09/10/2018

    Even though you want to do just one payroll per year you still need to file Form 941, your state’s withholding return, and your state’s unemployment tax return (if applicable to you) each quarter.

    You could buy some desktop software for less than a payroll service but you’d still need a way to file the W-2s electronically and to register for EFTPS to make the tax payments.  Plus you need to figure out how to file and pay your state’s withholding and unemployment tax.  Here’s one to check out: https://www.taxtools.com/products_af.aspx

    Payroll seems simple on the surface but when it comes to actually doing it, it’s surprisingly complicated.  Paying a monthly fee somewhere actually ends up being a good value for all that’s involved.

    I use Gusto for my payroll and for my clients’ payroll.  For you and your wife to be on payroll you’d pay $51/month which I think is a good value when you consider all that actually goes into staying compliant.  You don’t need to run a payroll each month if you don’t want to either.

    The penalties associated with doing payroll wrong outweigh the costs of a monthly service.

    Click to expand…

    I have no intentions of trying to do this myself.  With Gusto, to run ONE payroll per year, I would have to pay $600.  Pricey no?

     

    I think you may be asking about a one-time need, payroll at the eoy and then traditional monthly beginning next year. Is that correct? If so, just sign up for a payroll service in December and then transition to monthly in 2020. I heartily agree with @davidglenncpa that this is not an area where you want to pinch pennies or take shortcuts. The penalties for noncompliance (not to mention the headaches) are severe. As a HIP, you can find plenty of other ways to cut back on expenses besides professional services.

    Click to expand…

    No.  Plan is to only run one payroll end of year annually.  The $600 tag just seems a bit high…any recs on how to go about this cheaply? Will another CPA run a payroll once a year?

    #237875 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7958
    Joined: 01/09/2016
    No.  Plan is to only run one payroll end of year annually.  The $600 tag just seems a bit high…any recs on how to go about this cheaply? Will another CPA run a payroll once a year?

    Click to expand…

    To give you some perspective, we charge $250/qu for after-the-fact payroll, but the doc’s are getting a monthly check. Not sure about 1 payroll/yr. We’d still have to run reports, but, still, s/b pretty easy. I can check with Laura, if you want. If you’re not planning to be a CPA client, though, I’m not sure you would save much over the $600/yr. Why don’t you get a quote from your current CPA firm?

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #237876 Reply
    triad triad 
    Participant
    Status: Dentist, Small Business Owner
    Posts: 271
    Joined: 04/29/2016

    Can you sign up with a payroll company use it for a month and then drop the service?  I don’t believe I signed any contracts with my payroll companies…

    #237879 Reply
    Avatar HumbleInvestor 
    Participant
    Status: Physician, Small Business Owner
    Posts: 182
    Joined: 12/28/2016

    I use QB desktop with enhanced payroll and pay roughly $500 for the software and monthly charge, but I run bi weekly payroll for about 10 members. I used to use payrollmate that did the job but does not have the bells and whistles QB has that cost me about $100 per year.

    #237880 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7958
    Joined: 01/09/2016

    Can you sign up with a payroll company use it for a month and then drop the service?  I don’t believe I signed any contracts with my payroll companies…

    Click to expand…

    It would depend on the contract, but I would think so. There might be a set-up fee, however. You would have to use the service for 2-mo minimum – payroll prep in Dec and W2/ payroll tax returns in January.

    Why don’t you check out  HumbleInvestor‘s suggestion of payrollmate? I was going to recommend you check out Xero, but I just saw that they have teamed with Gusto, which has already been discussed. I have one client who uses ADP for 3 employees, not sure how much it would cost in your situation.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #237887 Reply
    childay childay 
    Participant
    Status: Physician
    Posts: 990
    Joined: 01/09/2016

    If you’re really only doing it once a year, presumably your CPA could do the calculations and fill the requisite forms out for you for a fee.  I am not sure what the CPA means by they “don’t do payroll.”

    #237902 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7958
    Joined: 01/09/2016

    If you’re really only doing it once a year, presumably your CPA could do the calculations and fill the requisite forms out for you for a fee.  I am not sure what the CPA means by they “don’t do payroll.”

    Click to expand…

    It’s not that unusual for CPA firms to decline to prepare payroll. State and local filing requirements can be complicated, federal withholding requirements vary based upon the size of the deposit, the firm has to be signed up for electronic deposits, and omitting one odd form that is required by a city or county can result in penalties and interest. Most forms at the local level have to be completed by hand or typed. Many CPAs see little financial benefit from offering those services, especially as a 1-off project – easier just to pass.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #237908 Reply
    Avatar robaxin 
    Participant
    Status: Physician
    Posts: 33
    Joined: 09/10/2018
    No.  Plan is to only run one payroll end of year annually.  The $600 tag just seems a bit high…any recs on how to go about this cheaply? Will another CPA run a payroll once a year? 

    Click to expand…

    To give you some perspective, we charge $250/qu for after-the-fact payroll, but the doc’s are getting a monthly check. Not sure about 1 payroll/yr. We’d still have to run reports, but, still, s/b pretty easy. I can check with Laura, if you want. If you’re not planning to be a CPA client, though, I’m not sure you would save much over the $600/yr. Why don’t you get a quote from your current CPA firm?

    Click to expand…

    Who is Laura?  Current CPA firm does not offer.

    #238040 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7958
    Joined: 01/09/2016
    Who is Laura?  Current CPA firm does not offer.

    Click to expand…

    My partner in our CPA firm.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #238050 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4482
    Joined: 05/13/2011

    This year we setup a husband/wife S Corp and need to run one pay roll for the year.  My CPA does not do payroll.  All of the companies I have read charge a per month fee and appear to be more geared towards monthly payrolls.  Any recommendations on who can assist with just ONE for the whole year?

    Click to expand…

    It can be done by hand. I’ve done one a year before and am currently doing one a quarter. Not sure I can recommend that approach as it seems either me or the IRS (lately more the IRS) screw it up most quarters. We exchange additional checks all the time.

    I don’t have a recommendation for a company that will do it once a year, but a reasonable small business focused CPA should be able to assist. Try these folks:

    https://www.whitecoatinvestor.com/tax-strategists/

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #238115 Reply

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