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Payroll software for incorporated physicians

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  • Payroll software for incorporated physicians

    For those of you that are incorporated, how do you handle payroll to yourself? Do you use Quicken or another payroll software? Any feedback on the many options? Or just use your accountant?

  • #2
    There is no one size fits all answer. Cloud based or installed software? Mobile Apps? What are the number of employees? Do you need to support 1099s? Integration with other software? How much work do you want to do (fully automatic with federal/state payments)? Workman's comp? Cost?

    I always recommend new corporations hire an accounting/tax professional at least for the first couple of years. Whether or not to use them for payroll is a totally separate question. It also matters how often you are going to run payroll.

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    • #3
      How about for specifically one-employee corporations, or those that incorporated to help decrease payroll taxes. Is it simple enough to do yourself, or do people pay for software?

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      • #4
        It is possible to do yourself, but like many things involving the IRS, it can be tricky. It might be better to let a CPA do it for the first year and then with insight under your belt do it yourself.

        The least expensive way I know (if it is still available) is Inuit Basic Payroll available for free from Bank of America. For it to be free, you have to have a business account and use direct deposit to personal BoA accounts. It will do all of the calculations for you and will make the federal payments. However, you will have to print the state forms a make payments directly. This is a decent way to go. The complexity is handled for you, but you still have some involvement.

        You can upgrade to Intuit Enhanced Payroll. Actually, Amazon is currently selling QuickBooks Desktop Pro 2017 with Enhanced Payroll Small Business Accounting Software [PC Download] for $199. This gets you accounting software and 1 year prepaid payroll for one person for one year, less than either the software or payroll would normally cost.

        There are many many, others; Gusto, SurePayroll, Paychex Flex, Sage, etc... The prices can range from $300 - $600+ depending on the number if employees.

        I have only used the BoA Intuit free product myself. The others are ones that small businesses I know use, but the list is by know means exclusive. They all seem to reasonably like the software they use, but seem to gripe now and again. I couldn't tell what those specific issues are. I think there is probably no one great software.

        It is kind of like solo 401k plans. Vanguard has Roth 401k, Fidelity does not. Fidelity allows their premium class index funds, Vanguard does not allow Admiral share index funds. Fidelity allows incoming rollovers, Vanguard does not, etc...

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        • #5
          How often are you planning on paying yourself?

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          • #6
            Thanks for the info about the various options! I'll just pay myself monthly

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            • #7




              It is possible to do yourself, but like many things involving the IRS, it can be tricky. It might be better to let a CPA do it for the first year and then with insight under your belt do it yourself.…
              Click to expand...


              @spiritrider has given you some great suggestions. At the same time, payroll and the various filing requirements are not for newbies, especially for state and local compliance that are not always adequately addressed in OTS software (local in particular). A good compromise might be to choose your software and have your CPA look over your should when it's time to file reports, particularly for the first quarter and the EOY.

              Depending on where you practice, you might have to begin filing reports after the first month, however, so be sure you understand your locality's requirements. In my experience, state entities are far less forgiving than federal (IRS) and local, as strange as that may sound.

              As to timing, monthly payroll is most common and easily done as most of the checks will be the same. Of course, when you max out FICA, your software will automatically adjust. However, I recommend you have your CPA run a tax projection in early December to ensure you have withheld enough FIT for the year. You can withhold extra on your last check and avoid penalty for underpayment as the IRS treats withholding as spread evenly during the year. You'll also have to determine how much to withhold on each check for your SOLO-k plan, which you may want to max out earlier in the year rather than spread evenly throughout the year.
              Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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              • #8
                I would add one big caveat about payroll software. If the S-Corp owner wants to avoid paying FICA on health insurance premiums and especially HSA contributions, you need to do a little dance with the S-Corp's 1120s, the owner's W-2 and the owner's personal 1040.

                It can be confusing for first timers, but more importantly many of the payroll providers can not structurally issue the correct W-2. The ones that can may require a little education and some teeth pulling.

                A good CPA can help with selecting the right software, cajoling them to issue a correct W-2 or simply providing the payroll, W-2, and tax returns themselves. That said, I have had arguments with a small minority of CPAs who don't understand this issue either.

                 

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                • #9
                  Ok I'm going to go with BOA's Intuit product for now, and see how it goes. My second choice was to be Gusto. My accountant said they will double check to make sure I'm doing it correctly.

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