OT: payroll processing

[sym]

A long time lurker, would like your help! I have noticed this forum has a number of engineers and business folks.

Can you suggest a company to manage the payroll/tax withholding/w2 forms/benefits for a small (3-5 employees) company? Ideally this management company does most of the work electronically, without a need for a lot of paperwork.

I have also heard about companies who can help process an independent contractor as their W2 employee for a small fee.

If you have suggestions on the cost involved in ‘outsourcing’ this aspect of business, that will also be greatly appreciated.

Thanks for your suggestions.

[Coronita]

I use to work at intuit. Have you tried one of their solutions?

[Allan from Fallbrook]

[quote=flu]I use to work at intuit. Have you tried one of their solutions?[/quote]

FLU: +1. If your company is using QuickBooks (and, based on the size, it would seem ideal), you should look at the additional services Intuit offers, including payroll processing and quarterly/annual state/Fed tax filings, including 940/941 (Fed) and Form 100 (Ca. FTB).

I run an engineering company that is very contract intensive (meaning lots of paperwork, including Certified Payroll on bonded/Gov’t projects) and our CPA has everything on QuickBooks, including P/R and taxes. Saves time and money, as we need to spend very little on bookkeeping/CPA fees as a result.

Definitely worth a look.

[spdrun]

If the independent contractor is truly a contractor, why the hell would you want to force them into W2 slavery?

[Allan from Fallbrook]

[quote=spdrun]If the independent contractor is truly a contractor, why the hell would you want to force them into W2 slavery?[/quote]

If they truly are an independent contractor, you wouldn’t want to force them into W2 slavery. However, as I’ve learned over the years, most “independent” contractors actually are not independent, per the IRS regs.

You’d rather run afoul of the Mafia than the IRS, believe me.

[sym]

Thanks for the Intuit suggestion – flu, Allan. The payment processing options sounds like what I am looking for. The cost also appear to be less than someone like Insperity (though they do more than payroll/tax compliance).

spdrun – I am not sure what the definition of true independent contractor is. Here is our scenario, as a group of friends we often work on the same projects with each of us with a separate independent contractor (mostly set up as sole proprietorship) contract.

Since we are planning to change our business entity to llc, we are looking at options to form a single business, where each of us are an employee.

If our plans are crazy wrong, please chime in with alternate solutions!

PS: My responses might be slow, as I have to periodically check if there are any new posts in this thread.

[spdrun]

If you form an LLC on equal terms, wouldn’t you basically all be members/shareholders of the LLC, rather than employees? Forming an employer/employee relationship between friends seems like very bad juju.

[sym]

[quote=spdrun]If you form an LLC on equal terms, wouldn’t you basically all be members/shareholders of the LLC, rather than employees? Forming an employer/employee relationship between friends seems like very bad juju.[/quote]

We are investigating our business structure, and will find one that works for us. I agree about forming business with friends. This was something we thought about, but having worked together since late 90’s we feel we can handle any disagreements in a mature way. Thanks for your feedback.

[spdrun]

Form a business, but on equal terms, not as some friends being employees.

[SD Transplant]

Asimov,

Without any doubt Intuit is best in class for small business. I would recommend them highly not only for ease of use but customer service. My friends that run small businesses and myself included use daily Intuit products which I love. Ease of use and customer service with Intuit products are above any other organization I know.

I vote for Intuit Payroll

I hope this helps you.

[Author]

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