How Do I run my own payroll?

Question

I have a small business and only need to run 1 check for an employee (self) once a year (S-Corp). I need to know:
a. How to go about it?
b. What forms need to be filed with Gov-t?
c. Where can I learn more info about it?

thanks!

Answer 1

Do it at the end of the year. You will need to file these IRS forms. See irs.gov for them - Form 940 (FUTA-Federal Unemployment) Form 941-Quarterly Fed witholding tax and social security and medicare. You will need to file your state's income tax witholding form if they have state income tax as well as their unemployment tax. Check your state's website - treasury or income or tax dept. for more info. You can file the Federal taxes online and have the money taken right from your bank acct. Sign up at EFTPS.com. Electronic Federal Tax Payment System. Check IRS Publication 15 for Federal taxes to be witheld. FICA is witheld at the rate of 7.65%. Find more info for that at SSA. gov. This is the base of what you should know. Contact me if you want more info.

Answer 2

You really shouldn't have payroll if you are the only employee (the paperwork you will need to generate is going to drive you nuts). Instead of paying yourself a salary, you can simply make an owner's draw. Since you have an S corporation, all you need to do is to file a partnership return (which you have to do anyway) and send yourself a Schedule K for including in your personal return.