Should You Use A Payroll Service?
Working through your own corporation brings with it many administrative and fiscal responsibilities, including payroll issues. When a corporation pays an employee for services rendered in the
United States, the payment may be subject to federal and state income tax withholding, and social security withholding.
A part of the payroll process involves:
- Applying for a federal Employer Identification Number;
- Applying for state identification numbers in any state in which the corporation has employees;
- Determining the appropriate amount of salary to be paid to key officers and management - see also our new topic regarding bonuses to
shareholders and related persons;
- Calculating the federal, social security, state and other withholdings which are required by law;
- Withdrawal of the gross amount of the payroll from the corporate bank account;
- Making federal and state withholding tax deposits;
- Filing quarterly 941 and equivalent state income tax returns to reconcile your payroll and remittances;
- Deposit of net pay to employee bank account(s)
- Preparing and filing forms W-2, W-3 and 940 (FUTA tax return) at the end of each calendar year.
All of these functions, although not individually complex, are time consuming and paperwork intensive.
In order to simplify all of the above processes and filings, we have established a method by which you can operate your payroll (with or without our assistance) on a handy service called:
PayCycle
For details, please click on this link to go to the PayCycle site.
Please note that PayCycle Inc. is an independent company. Although we use this company for payroll services, we have no knowledge of their operations except as posted on their web site.
If you have any questions regarding the operation of their service, please contact PayCyle directly through links provided on their web site.
The typical PayCycle payroll processing involves logging on to the PayCycle web site and authorizing the payment of salary. The salary can be directly deposited into employee accounts, and
federal taxes can be paid electronically. The entire payroll is debited from your bank account. The total typical cost is about $40. per month for this service.
In addition, if we set up your PayCycle account, you can allow us to access your payroll to provide assistance with input, planning or form filing as may arise from time to time.
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