Payroll service or software for small business

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I own a small business operating from bome. It is a sole prop and my wife is the only employee and i am the owner.

No state tax we are in texas but there is annual sales tax and payroll and solo 401k for her. Annual income around $50k from small business

I guess a software would be sufficient. Any recommendations?

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When I was in that situation in Texas I had my CPA do it for me, I think he charged me a few hundred bucks a year to do the payroll reports for the state and unemployment reports, etc. They just mailed a packet quarterly of stuff to sign, checks to write, and envelopes to put in the mail.

Probably could have done it myself... but it was just easier to pay someone. I guess it really depends on how FWF you

Where in Texas are you?

I'd get some local CPA/Bookkeeper recommendations.  Here is why:

1. No state income tax, but does have a state biz tax. You just have to file forms for $50k, but you still have deadlines and have to know what to do.

2. Sales tax - same thing, Texas has arcane and punitive sales tax rules.

3. 401k - you'll end up wanting someone to confirm that she's taking the correct amounts for the 401k... and maybe have questions on how to maximize it.  (You may be better with a lower, reasonable salary, no 401k and then take distributions from an S-corp (no payroll taxes on the S-corp distributions).)

4. If you only need to do payroll for one person, it may not be worth the money and effort to learn Quick(expensive)Books.   QB is expensive and the payroll portion is an additional @ $200 per year.

Unless you already know how to do all of these things - or have a desire to learn them, I'd outsource these things.

There are a number of new IRS requirements during the past couple of years that small business must comply with.  One that comes to mind that may affect you is 1099 reporting requirements.  A couple of resources that might be informative:

(1) An article discussing issue here: 

(2) IRS website at this link and beginning excerpt of IRS's discussion below: 

If you made or received a payment during the calendar year as a small business or self-employed (individual), you are most likely required to file an information return to the IRS. This page is applicable to specific and limited reporting requirements. For more detailed information, please see General Instructions for Certain Information Returns or specific form instructions.Do not file Copy A of information returns downloaded from the IRS website. The official printed version of the IRS form is scannable, but the online version of it, printed from the website, is not. A penalty may be imposed for filing forms that cannot be scanned....

Bank of America has free Intuit Basic payroll if you direct deposit her pay from your BoA business account to hers. Basic should be perfect for you with federal electronic payments for income tax withholding/FICA/unemployment and state workman's comp. It does not do state electronic payments, but since that is not necessary in TX, you should be good to go.

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