quote:
Any business owners with an S-corp willing to give advice on how to pay myself a "reasonable salary". I'm not too concerned with the amount but more so of how to go about paying the salary.

We use a subscription wage survey but there are also free ones. Bureau of Labor Statistics and Salary.com would both provide data if it was questioned by an auditor.

quote:
Do you utilize a certain software to do so? Can I just transfer the funds to my personal account or is there a certain way I absolutely have to go about it? Thanks in advance.

I would recommend using a payroll service (they are pretty cheap) to make sure the payroll taxes are withheld and paid properly. ADP, Paychex, Ultimate Software are some of the bigger companies. If you are using QuickBooks, they have an assisted payroll that is very cheap and easy to use. Any of the payroll services mentioned above would take care of your quarterly filings and year end reporting.

One thing to keep in mind is there are certain shareholder add-ons depending on how much of the company you own. Health insurance and personal use of auto are two examples. I would probably talk to your CPA to make sure those are accounted for.

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Posted by baldona

Florida

Member since Feb 2016

20512 posts

Posted on 7/2/19 at 2:02 pm to BamaAlum02

quote:
If you are using QuickBooks, they have an assisted payroll that is very cheap and easy to use. Any of the payroll services mentioned above would take care of your quarterly filings and year end reporting.

Quickbooks is not cheap, its not expensive but its something like $800 a year for the payroll version. It goes up substantially with the number of employees, something like $4 per employee per paycheck then there are other fees also.

Also, not sure how much you are making OP but I just went through this myself. Most of the payroll companies require about 2500/ week in payroll to work for you. Their costs start about 2.5% and go up from there depending on your needs.

So you are looking about $3000 to outsource with someone reputable. My CPA was about the same FWIW.

This post was edited on 7/2/19 at 2:03 pm

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Posted by DrewSimp82