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One payroll per year

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  • childay childay 
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    (lately more the IRS)

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    How so? Considering doing quarterly payroll for spouse’s s-corp

    #238117 Reply
    The White Coat Investor The White Coat Investor 
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    Status: Physician
    Posts: 4482
    Joined: 05/13/2011
    (lately more the IRS) 

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    How so? Considering doing quarterly payroll for spouse’s s-corp

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    They think I filled out 941 wrong and I didn’t. Seriously, this happens more quarters than it doesn’t. I call them up, we chat, they agree with me, I send them back the check. And occasionally they catch my mistake. People need a lot less fear of the IRS. If you’re actually trying to do it right, the folks I talk to are always reasonable and nice.

    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

    #238118 Reply
    Liked by Tim
    childay childay 
    Participant
    Status: Physician
    Posts: 990
    Joined: 01/09/2016
    (lately more the IRS) 

    Click to expand…

    How so? Considering doing quarterly payroll for spouse’s s-corp

    Click to expand…

    They think I filled out 941 wrong and I didn’t. Seriously, this happens more quarters than it doesn’t. I call them up, we chat, they agree with me, I send them back the check. And occasionally they catch my mistake. People need a lot less fear of the IRS. If you’re actually trying to do it right, the folks I talk to are always reasonable and nice.

    Click to expand…

    Ah.  We have in past failed to submit form 941 quarterly when we didn’t pay any wages.  Then a year or so later get a letter from IRS to clarify.  Annoyingly, one cannot submit a zero payment online via EFTPS, as far as I can tell.

    #238122 Reply
    Avatar DavidGlennCPA 
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    You can file a $0 Form 941 which would prevent the letter a year or so later.

     

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

    #238127 Reply
    Liked by childay
    Avatar Kamban 
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    Status: Physician
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    Joined: 08/01/2016
    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?

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    As it has been pointed out you cannot just run one payroll just to file necessary paperwork once per year. You will have to file Federal, state and fed+state unemployment returns quarterly.

    What I do is make payments bi-weekly and then make the withholding payments for fed and state electronically. I use the EFTPS and the state Treasury site. After every quarter I give the gross pay, net pay and all the wit holdings and payment days to my accountant in spreadsheet format and he files the quarterly returns (now $300 for 6 employees). I get the paperwork and mail it and if I need to pay FUTA/SUTA or additional taxes I pay it by check / electronically. One a year they prepare the W2 and 1099 for additional fee and take care of the final returns.

    If your CPA firm does not do it you need to find another one that does. $1200/year is an amount I would gladly pay to take care of all headaches and not deal with IRS or state Treasury department.

    #238133 Reply
    Liked by Tim, childay
    Avatar Tim 
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    Status: Accountant
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    Payroll is a process. Once it is setup and running, it is purely a clerical task.
    The filings federal, state, local income taxes
    The filings federal and state unemployment.
    Payments required for each.
    Get the forms and you can do it.

    Someone that does the process weekly, bi-weekly, semi-monthly or monthly will find it easier. Same front end time getting setup.
    “Is it worth your time ?” is the question.
    Don’t forget, most times you will need a state ID # besides your EID.

    You will learn to do it correctly or pay for a payroll service.

    #238165 Reply
    Avatar robaxin 
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    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…

    As it has been pointed out you cannot just run one payroll just to file necessary paperwork once per year. You will have to file Federal, state and fed+state unemployment returns quarterly.

    What I do is make payments bi-weekly and then make the withholding payments for fed and state electronically. I use the EFTPS and the state Treasury site. After every quarter I give the gross pay, net pay and all the wit holdings and payment days to my accountant in spreadsheet format and he files the quarterly returns (now $300 for 6 employees). I get the paperwork and mail it and if I need to pay FUTA/SUTA or additional taxes I pay it by check / electronically. One a year they prepare the W2 and 1099 for additional fee and take care of the final returns.

    If your CPA firm does not do it you need to find another one that does. $1200/year is an amount I would gladly pay to take care of all headaches and not deal with IRS or state Treasury department.

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    I must have missed it, but who said you cannot run just once per year?  If indeed true, do you have some IRS guidance for reference?

    #238170 Reply
    Avatar robaxin 
    Participant
    Status: Physician
    Posts: 33
    Joined: 09/10/2018
    Who is Laura?  Current CPA firm does not offer. 

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    My partner in our CPA firm.

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    Would you please inquire and DM me? I would be interested in getting additional information.  Thank you.

    #238172 Reply
    Avatar Tim 
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    Joined: 09/18/2018
    #238173 Reply
    Avatar Kamban 
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    I must have missed it, but who said you cannot run just once per year? If indeed true, do you have some IRS guidance for reference?

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    Generally, employers are required to file Forms 941 quarterly. However, some small employers (those whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less for the year) may file Form 944, Employer’s ANNUAL Federal Tax Return annually instead of Forms 941.

    Monthly or semiweekly deposits may be required for taxes reported on Form 941 (or Form 944), and quarterly deposits may be required for taxes reported on Form 940. Employers should consult each form’s instructions or Publication 15 to determine when and how to make deposits.

    My accountant told me years ago that even though I might take one salary per year but have to pay the taxes on it at least quarterly. You cannot pay yourself 100K in December and file payroll taxes in Jan for it. I need to pay myself 25K each quarter and pay the taxes on it right away. I also found once the federal + FUTA and Medicare exceeded 50K for the year I needed to deposit the money with IRS within 3 business days of payment, and not pay it once a month as I was doing in the past.

    I don’t know if that was true or that the rules have changed but I decided to follow his advice since he will face the IRS or state auditors if they try to audit me and I could prove I followed his advice. I have had a few state and IRS letters over the years on the payroll and other business taxes and he usually takes care of it as that was included in the pricing.

    Do whatever you feel is best in your situation but don’t be penny wise and pound foolish.

     

    #238187 Reply
    The White Coat Investor The White Coat Investor 
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    Joined: 05/13/2011

     

    You will learn to do it correctly or pay for a payroll service.

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    Isn’t that the truth! The IRS won’t let you do it wrong for long!

    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

    #238190 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4482
    Joined: 05/13/2011
    I must have missed it, but who said you cannot run just once per year? If indeed true, do you have some IRS guidance for reference? 

    Click to expand…

    Generally, employers are required to file Forms 941 quarterly. However, some small employers (those whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less for the year) may file Form 944, Employer’s ANNUAL Federal Tax Return annually instead of Forms 941.

    Monthly or semiweekly deposits may be required for taxes reported on Form 941 (or Form 944), and quarterly deposits may be required for taxes reported on Form 940. Employers should consult each form’s instructions or Publication 15 to determine when and how to make deposits.

    My accountant told me years ago that even though I might take one salary per year but have to pay the taxes on it at least quarterly. You cannot pay yourself 100K in December and file payroll taxes in Jan for it. I need to pay myself 25K each quarter and pay the taxes on it right away.

     

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    I don’t think that is actually true, but I do think it is what most of us (including me) do.

    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

    #238191 Reply
    Avatar Steven Podnos MD CFP 
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    Just a thought-would issuing just 1099s work for your needs?

    #238209 Reply
    Avatar Tim 
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    Status: Accountant
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    Joined: 09/18/2018

    Read please. Form 944 is annual. Actually, the IRS is very clear and helpful.
    Just remember “flexibility and empathy “ doesn’t enter into the process.

    #238210 Reply
    jfoxcpacfp jfoxcpacfp 
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    I must have missed it, but who said you cannot run just once per year?  If indeed true, do you have some IRS guidance for reference?

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    Yes, you can run only 1 payroll per year. I think what @kamban was referring to was the quarterly zero-balance reports and then the annual reports in January. I have pm’d you.

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

    #238246 Reply

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