Payroll

[Super Mom]

I want to prepare payroll for a client. I want to get approval for tax per paycheck like the big box firms do. I understand that I can go on and deposit the 941 and 940. But what about the Quarterly unemployment and state withholding? Do I just keep those funds as an accounts payable until paid? Is that legal?

[BOB W]

Payroll is not a simple task for a new comer to this area. The learning curve is one thing and personal responsibility to your client can be costly to you. Once set up it can be quite routine if you recognize the responsibility you are taking on.

As far as State reporting goes, you should contact your state unemployment and withholding office to get the forms needed to register your client. the same with the IRS.

Many accounting firms use outside services to manage their clients payroll processing. Some less expensive providers are out there, like "Sure Payroll".

When I have more time I'll add more info.

[Super Mom]

Payroll is not a simple task for a new comer to this area. The learning curve is one thing and personal responsibility to your client can be costly to you. Once set up it can be quite routine if you recognize the responsibility you are taking on.

As far as State reporting goes, you should contact your state unemployment and withholding office to get the forms needed to register your client. the same with the IRS.

Many accounting firms use outside services to manage their clients payroll processing. Some less expensive providers are out there, like "Sure Payroll".

When I have more time I'll add more info.

I am very knowledgeable on payroll and laws. I have done payroll for many years, and I have also had firms us big box providers. I have always had clients pay the 941 deposits close to the 15th of each month on EFTPS and pay 940 yearly and other taxes quarterly. However, I would like to have the employer agree to the taxes that apply to each paycheck as they go so that they don't have the big "sticker shock" on taxes accrued. I know that is how the big box firms do it, but not sure how that is done legally. Can someone help me with that?

[spanel]

I am very knowledgeable on payroll and laws. I have done payroll for many years, and I have also had firms us big box providers. I have always had clients pay the 941 deposits close to the 15th of each month on EFTPS and pay 940 yearly and other taxes quarterly. However, I would like to have the employer agree to the taxes that apply to each paycheck as they go so that they don't have the big "sticker shock" on taxes accrued. I know that is how the big box firms do it, but not sure how that is done legally. Can someone help me with that?

You can pay the IRS/State taxes as often as you want. You will however, depending on how large the liability is, will have a minimum quarterly, monthly or weekly due dates. 940 is yearly unless over $500, then pay on that quarter or again, as often as you want. Look into different software companies to assist you in this.. I use Quickbooks Enterprise for Accountants and everything for the most part is handled in Quickbooks (payments/quarterlies/annuals and all efiled)

Chris

[Super Mom]

You can pay the IRS/State taxes as often as you want. You will however, depending on how large the liability is, will have a minimum quarterly, monthly or weekly due dates. 940 is yearly unless over $500, then pay on that quarter or again, as often as you want. Look into different software companies to assist you in this.. I use Quickbooks Enterprise for Accountants and everything for the most part is handled in Quickbooks (payments/quarterlies/annuals and all efiled)

Chris

Do you have the enhanced or 'assisted payroll' subscription or do you have the full payroll subscription?

[Super Mom]

I am having trouble getting info from the Quickbooks people, they seem to know nothing, and can't seem to understand that I don't have a subscription yet. I thought maybe some of you that are using Quickbooks enhanced accountant's payroll subscription can give me some info on how I can do business like the big box firms. Thanks!

[TAXNJ]

….But what about the Quarterly unemployment and state withholding? Do I just keep those funds as an accounts payable until paid? Is that legal?

It will be “legal” by following the specific requirements for the particular agencies.

Since you say you are very knowledgeable with payroll why would “unemployment and state withholding” be any different if you follow the requirements?

QB enhanced payroll if setup properly will show amounts accruing and when payment is due that you could share with the “employers” everyday if you want.

[Super Mom]

It will be “legal” by following the specific requirements for the particular agencies.

Since you say you are very knowledgeable with payroll why would “unemployment and state withholding” be any different if you follow the requirements?

QB enhanced payroll if setup properly will show amounts accruing and when payment is due that you could share with the “employers” everyday if you want.

Because the state unemployment and withholding is QUARTERLY--I was asking how to legally accumulate the money to pay. Yes, I know Enhanced Subscription will give me the number to share with the client, but daily time wise is ignorant, and I have found that providing the information per pay period still does not prevent the "sticker shock" at the end of the quarter for small businesses that are often juggling their dollars.

[Super Mom]

The big box payroll companies do this somehow, I want to understand how so I can provide comparable service. I would greatly appreciate input from anyone knowledgeable about what I am asking for.

[BOB W]

Super Mom... You really have me confused. Your opening remark implied no knowledge of payroll processing, even your state question. NO RESPONSE REQUIRED

[TaxGuyBill]

My first thought is that a separate bank account (a "trust account"?) needs to be set up for each employer, and have signature authority over that account.

https://www.standard.net/news/business/payroll-taxes-are-equal-to-a-trust-fund/article_442c5aef-c7eb-54e0-bf7b-2ac7e4f34727.html

But be cautious. If you are in charge of making payroll payments and something goes wrong and they are not paid, YOU are the one responsible for penalties, which can be quite large.

[BOB W]

My first thought is that a separate bank account (a "trust account"?) needs to be set up for each employer, and have signature authority over that account.

https://www.standard.net/news/business/payroll-taxes-are-equal-to-a-trust-fund/article_442c5aef-c7eb-54e0-bf7b-2ac7e4f34727.html

But be cautious. If you are in charge of making payroll payments and something goes wrong and they are not paid, YOU are the one responsible for penalties, which can be quite large.

Where is this thread going... Way off track.......................

[TAXNJ]

The big box payroll companies do this somehow, I want to understand how so I can provide comparable service. I would greatly appreciate input from anyone knowledgeable about what I am asking for.

Simple answer. Call Paycheck and/or ADP and ask how they handle it.

Have no idea why “quarterly” unemployment and state w/h is any different process than Federal payroll tax (other than rates, etc.)

[Lion]

Just like learning tax preparation or any job, take classes &/or work for a payroll company to gain experience. If you're using QB, they probably provide payroll courses.

QB payroll support used to be separate from their bookkeeping support, maybe out of TX. Get your QB sales rep on the phone; sales reps want to sign you up for more services, so will answer all your questions.

There are companies, such as AccountantsWorld Payroll Relief, that process payroll for you while you remain the friendly, local payroll person to your clients. Check your friendly, local bank where you have your business account; banks often have a payroll service that you can "private label." The great thing about these types of services is that you won't have to have signature authority or risk grave trouble if a client bounces a payroll tax check, but your clients remain your clients, going through you for their payroll processing.

Look for a processor where you can report payroll early for a later paydate &/or where your client can upload their payroll themselves, so you are not tied down to a weekly or bi-weekly schedule.

Check out Medlin: https://medlin.com/ I'm familiar with the owner from another tax professional message board.

I know bookkeepers that use Gusto. I used QB, but don't have any employees any longer. For clients that don't use QB, I used Paychex and iSolved (that started out as People's United Bank who then hired Sage to process who was bought out by someone else and finally iSolved, so I don't know iSolved very well).

https://www.capterra.com/sem-compare/payroll-software?gclid=CjwKCAjwt8uGBhBAEiwAayu_9b0hLuSzDQHe9Wtz0vmdjnIkYLkxbYudVT1ztbwd8e3Dn3YsFaQczBoClSAQAvD_BwE

https://top-payrollservices.com/?gclid=CjwKCAjwt8uGBhBAEiwAayu_9SelC9sHUqwmoGL1FF_CZYR5JBPRuqA4MF6hIk54KdrXo6obskN8vRoCeJkQAvD_BwE

https://www.americanpayroll.org/

https://www.irs.gov/businesses/small-businesses-self-employed/payroll-professionals-tax-center-information-for-payroll-professionals-and-their-clients

[Gretel]

Simple answer. Call Paycheck and/or ADP and ask how they handle it.

Have no idea why “quarterly” unemployment and state w/h is any different process than Federal payroll tax (other than rates, etc.)

I agree. You seem to have a pretty good idea of what you want to have accomplished - but nobody posting here is a "big box" payroll provider. If you have a legal question an attorney should be consulted. If you have a very specific payroll question, maybe someone here can help.