Your Questions About Business Online Payroll
Nancy asks…
One company – 2 business, how to setup?
Hello folks,
I have 1 retail business (with 1 employee on payroll), I run it as a sole proprietor and I have a federal EIN. I am planning to start a new business – this will be online only business, with different suppliers from oversees.
I am planning to open a separate bank account for the online business and have separate merchant credit card processing, paypal, etc.
My retail business has about $100K annual gross, the online business will have about $150K annual gross, but 90% of that would be the cost of merchandise.
My question is, should I turn my business into a corporation and have 2 DBAs? Should it be C-corp, S-corp or LLC? Any other advices?
Jere answers:
If you need cheap business cards, look here. Http://spn.tw/tPGDW They have mini, square, reg. & portfolio options.
Carol asks…
does anyone use quickbooks onine payroll, if so or even if you dont can you read and advise please?
okay so im signed up for th $39.99 the online plus i spoke with their chat rep today, this is what i need.
i own the company but was told if i work for the company b the irs that i have to become an employee and pay myself a wage. now i live in WA. everyone under me is a contractor and they are a contractor with a 1099. i need something to track all wages to myself and my 1099’s and calculate my taxes and also business taxes on my business net income. im not good with taxes in other words. i was told if i go on there top package for 62$ a month that i would be able to have pay roll and it will automatically do my taxes and file them for my w-2’s as well and track 1099 information and if i want quickbooks to report my 1099 at the end of the year it would be $39.99 as it cost to get the paper to file the 1099 to go to the irs is that true. im a new company so im trying to stay within a cost limit untill i understand how all this works fully. whilst also work for my own company. so im already nearly pulling my hair out at this point.
i want to pay my 1099 direct depoist but they said their payroll does not support paying non payees which is fine i will just pay them direct deposit via my business online banking.
i guess im looking for any suggestions, what will be best for my company as far as keeping records and doing taxes and withholdings for myself as an employee as well as trying to understand what will my business be taxed per year for business tax….
also in WA you have to pay federal tax, SSN, and now im hearing about workers compensation tax?? i know there is no state tax in WA….can you provide any information to help me understand please
Jere answers:
” own the company but was told if i work for the company b the irs that i have to become an employee ”
WHAT KIND OF ORGANIZATION?
If this is a sole proprietorship, you CANNOT be an employee. You CANNOT receive a traditional paycheck on payroll. You must file 1040-ES (Estimated tax payments) quarterly.
If this is an LLC, LLC’s are a “disregarded entity” by the IRS. This means the IRS does NOT recognize them unless they ‘elect” to be treated as a corporation. A single member LLC defaults to a sole proprietorship (see above).
If this is a corporation (XYZ, Inc. Or ABC Corporation), then you MUST be an employee and pay yourself a salary commensurate with your position. In other words, you cannot take a salary of $10K and “distributions” or “dividends” of $20K.
Since you need to do your books (Receivables, Payables, checks, etc), I recommend using an accounting program like either Peachtree (my preference) or Quickbooks. Either can track your 1099 vendors and produce 1099s at the end of the year. Payroll and Contractors are 2 different things. Most payroll services can pay contractors and prepare the 1099’s, but it’s a separate service.
And you can use Quickbooks online payroll to do your own.
Jenny asks…
who makes the best accounting software for a small business?
I am starting a microenterprise and I do not have employees so I don’t have to do any payroll. I want to buy software for accounting and I don’t know which one would work best. I will be selling mostly online.
Jere answers:
Quick Books
Ruth asks…
How do I start my own Accounting Business?
I would like to start my own accounting business online until I get enough money to open up a place. I need to know how I can go about this and what services I should offer such as Bookkeeping, payroll etc. I have my Bachelor’s degree in Accounting and I work in the Accounts Payable department for a company but I am not really doing the accounting that I thought I would be doing with a Bachelor’s degree. I want to make a salary. If there are any books that help on starting your own business in accounting please let me know. Thanks
Jere answers:
Need a cpa license then go for it.
Chris asks…
where can i buy personal checks that have a business look to it? i want to purchase personal checks but that?
look like the checks that big corporations give to their employees when they get paid. they look more “professional” like. if money is not an object where can i buy these types of checks online? i used to work at a manufacturing facility and their payroll was done by ceridian, should i get in contact with them or something? can a banking expert please tell me. rsvp. thank you.
Jere answers:
What is your definition of “professional look”? Google “check printers.”
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