Why Choose Us?

• In short: we'll take care of your payroll while making sure you are all set tax-wise.

Satisfying "Reasonable Compensation" Requirement

Our firm handles business owners' payroll filings (well, Gusto does the paperwork but we do most of the decision-making). A key requirement for S-Corp owners is "reasonable compensation," which, in simple terms, means paying yourself fair wages. We keep this requirement in mind and work around it, simplifying your tax situation in many aspects.

We also consider factors like how much time you dedicate to the business or its profitability in a given year. If you're working less or the business isn’t as profitable, there might be an opportunity to reduce your reasonable compensation—meaning lower self-employment taxes for you. We'll always provide you with strategic insights to help you save.

Smart Payroll Adjustments for Zero Surprises

We adjust our clients' payroll withholdings throughout the year so that they break even (or close to it) at tax season. How do we know projected tax liability? We create mock returns and calculate projected tax, taking into account income from the K-1 form and other sources. This strategy also mitigates the risk of estimated tax penalties, which are caused by poorly timed tax payments or their absence. When taxes are withheld through payroll, the IRS considers the withholding as timely payment, even if the payroll withholding was made on the late date. This means that estimated tax penalties won't be imposed as long as the full tax was paid during the year.

Flexible Year-End Bonus Strategy

Some S-Corp owners prefer to do their tax planning at the end of the year and pay the remaining tax liability by issuing themselves a bonus and applying this bonus toward their estimated tax liability for the year. This works well, and the only difference between the two strategies is your money management preference: do you want to part with your cash gradually throughout the year or keep it in your account until December and part with it then? Either way, we’ve got you covered.

Insurance Premiums and 401k Contributions

We also assist with setting up 401(k) contributions and self-employment insurance premiums in Gusto, ensuring they’re reflected correctly on your W-2.

Tailored Payroll Solutions for Your Situation

• Contact us today to schedule your free consultation and discover how we can help you with payroll needs!