TimParticipantStatus: AccountantPosts: 2858Joined: 09/18/2018
Payroll withholding and payment is based on the payroll date. That avoids the quarterly payment need that was alluded to in some posts. The start up understanding the requirements is the time consuming part, not running the payroll. The forms are really easy. At a minimum, Johanna’s partner can set you up. The checks and returns are your target. I would suggest Laura or another do the first set so your bases are covered. After that, you can basically copy and file. Or, as Kambam suggested, use your free time while someone else does it.August 12, 2019 at 8:45 am MST #238259DAKParticipantStatus: Other ProfessionalPosts: 22Joined: 11/30/2016
I just went through this process for a LLC taxed as a S-corp I setup.
Be warned that setting up payroll can take a little while, so don’t wait until mid-December to start.
I chose patriot software. 60-day free trial then $30/month + $4/month per employee. So if just you and spouse, it is $38/month and they will file all your tax forms for you (one state, federal, monthly/quarterly/annually as required, including issue W2s).
So you could sign up in November, setup your payroll and then cancel, but for $456/yr, why bother cancelling.
When I researched this I found that federal form 941 (which you file quarterly to report payroll taxes) has a line 18 that you can check with every one you file to indicate that you are a seasonal employer. That way the IRS does not expect a 941 every quarter. However, if your business is operating all year, the IRS may ask why you didn’t file quarterly as they may be inclined to have you paying estimated payroll taxes, etc. State requirements may vary.
In the end, I figured the $456/yr is worth it to avoid headaches. Make sure you have a business checking account setup, and that you have obtained EIN, state equivalent, etc.August 12, 2019 at 8:48 am MST #238262