Service

Payroll Services for Small Businesses

Payroll run on time, deposits made on schedule, and quarterly returns filed. The deadlines are the whole job.

Who this is for

  • Businesses hiring their first employee
  • S corporation owners who need to run their own reasonable compensation
  • Owners currently doing payroll manually
  • Businesses that have received a payroll tax notice

What this actually involves

Payroll tax deposits are the real deadline

Employment taxes withheld from an employee are held in trust for the government. Deposit deadlines depend on your deposit schedule, and the penalty for being late escalates with the delay.

This is the part of payroll that penalises inattention rather than error. The calculation is usually straightforward; the calendar is what causes problems.

Employee or contractor

Misclassifying an employee as a contractor is one of the more expensive mistakes a small business can make, because the liability includes the taxes that should have been withheld, plus penalties, across every affected worker.

The test is about control and the nature of the relationship, not about what the contract calls the person or whether they asked to be paid on a 1099.

Florida specifics

Florida has no state income tax, so there is no state withholding on wages. Reemployment tax still applies and is administered by the state, with its own registration and quarterly reporting.

Employers with staff in other states pick up those states’ withholding and unemployment obligations as well, which is a common complication for remote teams.

Worked example

First employee, and a contractor who was never really a contractor

A landscaping business hires its first full-time employee. It has also been paying a regular worker as a contractor for two years — same schedule every week, company equipment, and direction on how the work is done.

That second arrangement does not look like contracting under the control test, whatever the invoices say.

What gets filed: Payroll registered and running for the new employee, and the misclassified worker reviewed and moved onto payroll. The prior exposure is quantified so it can be dealt with deliberately.

Illustration only — not a real client. Figures are chosen to show how the rule applies.

What’s included

  • Payroll processing on your schedule
  • Federal and state tax deposits made on time
  • Quarterly payroll returns and annual reconciliations
  • W-2 and 1099 preparation and distribution
  • New hire registration and Florida reemployment tax setup
  • Worker classification review

How it runs

  1. Setup

    Registrations, deposit schedule, and pay calendar established.

  2. Each pay run

    Processed, with deposits made on schedule.

  3. Each quarter

    Quarterly returns filed and reconciled.

  4. Year end

    W-2s and 1099s issued and filed.

What it costs

Fees depend on what your situation actually requires — the number of accounts, the number of years, and whether prior filings need correcting. A return with one W-2 is not the same job as six years of catch-up reporting, and quoting both the same way would be dishonest.

You get a fixed quote in writing before any work starts. No hourly billing, and no invoice that arrives larger than the number you agreed to.

Common questions

I am the only employee of my own S corporation. Do I need payroll?

Yes, if you work in the business. An S corporation owner who provides services must take reasonable compensation as W-2 wages, which requires payroll. Taking only distributions is a well-known examination issue.

What happens if a payroll deposit is late?

A failure-to-deposit penalty applies, and it increases with the length of the delay. Withheld employment taxes are held in trust, which is why the enforcement is stricter than for most other filings. If a deposit has already been missed, address it promptly rather than waiting for the notice.

Can I just pay everyone on a 1099?

Only where they are genuinely contractors. The test turns on behavioural and financial control and the nature of the relationship — not on the label in the agreement or on the worker preferring it. Misclassification liability covers the taxes that should have been withheld plus penalties, across every affected worker.

Talk to us about your situation

A short conversation is usually enough to tell you what your situation actually requires — and what it does not.