Payroll

by Bill
(CT)

Can I take a payroll check if I set my business up as a S-corp?


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Hi Bill!

Yes, you can and you should. The IRS has been looking into S-Corp owners who don't take a reasonable payroll.

If you need help, I've been doing payroll for years. Just give me a shout.

Thanks for your question!

Kathy

Comments for Payroll

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Oct 16, 2014
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taking payroll
by: Kathy

The IRS wants to see S-Corp owners taking payroll and paying payroll taxes rather than just taking the profits of the company as distributions.

That's great if your business has the funds to pay you. If you're just starting out, however, that might not be the case.

If you can pay yourself payroll, I would encourage you to do so, even if it's only monthly or quarterly. If you can't afford to yet, just wait a bit until you get more sales going and can afford to pay yourself something. And remember, you have to budget for the payroll taxes, too.

If you need help with payroll, don't hesitate to ask for help. I can help get you set up for payroll or calculate it for you. My fees are quite reasonable.

Hope that helps!

Kathy

Oct 14, 2014
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Need more info
by: Anonymous

We are just starting up our business. We have a lot of debt and are living off our retirement rignt now, trying to pay down the debt with incoming $$. Should we also be trying to take a paycheck?

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