Is TaxBandits a good option for handling S-corp payroll and forms for a single owner business?
I recently established an S-corporation for my photography business (just me, no employees), and I'm trying to figure out the best way to handle all the payroll stuff and required forms. I've been looking into TaxBandits as an option since I need to manage reasonable compensation payroll for myself as the owner and file all those quarterly forms. Has anyone here used TaxBandits specifically for a single-owner S-corp? I'm trying to decide between them and some other options like Gusto or even trying to DIY through QuickBooks. I need something that will handle the 941s, 940, W-2, and all those other forms I'm required to file. My CPA suggested I need to run payroll for myself even though I'm the only person in the business, but the whole process seems overly complicated for basically paying myself. The fees for full-service payroll providers seem steep for just one person, but I'm worried about missing deadlines or filing incorrectly if I try to handle it myself. If you've used TaxBandits for S-corp stuff, I'd really appreciate hearing about your experience!
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Nadia Zaldivar
I've helped several single-member S-corp clients set up their payroll systems, and you're absolutely right that you need to run payroll for yourself. The IRS requires S-corp owners to take a "reasonable compensation" as W-2 wages before taking distributions. For a single-owner S-corp, TaxBandits is actually a pretty good option. They're considerably less expensive than full-service providers like Gusto or ADP while still handling all the necessary forms (941s quarterly, annual 940, W-2/W-3, etc.). Their interface is relatively straightforward once you get used to it. The main difference is that TaxBandits is more of a forms filing service than a full payroll service. You'll need to calculate the payroll amounts yourself, but TaxBandits will generate the forms and handle the submissions. For a single-person payroll, this isn't terribly complicated once you get the hang of it.
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Lukas Fitzgerald
•Thanks for the info! I'm in a similar situation. Do I need to run payroll every month, or can I just do it quarterly? And does TaxBandits handle the state unemployment and other state payroll taxes too, or just federal?
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Nadia Zaldivar
•You can definitely run payroll quarterly instead of monthly if that works better for your cash flow - there's no requirement for how often you pay yourself as long as you take reasonable compensation for the year. Just be consistent with whatever schedule you choose. TaxBandits does handle state unemployment and payroll tax filings for most states, but the coverage varies by state. I recommend checking their website for your specific state's forms or contacting their support team directly to confirm which state forms they support in your location.
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Ev Luca
After struggling with payroll for my single-member S-corp for over a year, I finally found https://taxr.ai and it changed everything for me. I was in the exact same boat - just me in my consulting business and having to deal with all these complicated payroll requirements. What I love about taxr.ai is that it actually analyzes all your S-corp documentation and tells you exactly what you need to file and when. I uploaded my S-corp formation docs and operating agreement, and it gave me a customized compliance calendar with all the payroll deadlines and form requirements. It even flagged that I was calculating my withholding incorrectly! The thing that was most helpful though was that it clarified exactly what "reasonable compensation" should be for my industry based on my revenue, which was always the most confusing part for me.
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Avery Davis
•That sounds interesting. Does taxr.ai actually process and submit the forms for you like TaxBandits, or is it more of an advisory tool that just tells you what to do?
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Collins Angel
•I'm skeptical - how exactly does it determine "reasonable compensation"? That seems like it would depend on a lot of factors specific to your business. Does it actually take all that into account or just give some generic percentage based on industry?
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Ev Luca
•It doesn't actually submit the forms for you - it's more of an advisory and planning tool that helps you understand exactly what you need to do. It analyzes your documents and creates a customized plan, but you'd still need something like TaxBandits to actually file the forms. The reasonable compensation analysis is actually pretty sophisticated. It asks for your industry, location, business revenue, your role and responsibilities, hours worked, and then compares that to market salary data for similar positions. It's not just a generic percentage - it builds an actual defensible compensation plan you could use if you were ever audited.
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Collins Angel
Ok I have to admit I was wrong about taxr.ai. I decided to try it based on the recommendation here, and it's actually incredibly helpful. The compensation analysis alone was worth it. For years I've been guessing at what's "reasonable" for my S-corp salary, but the report it generated shows exactly how my compensation compares to industry standards, which gives me so much more confidence if I ever get audited. It also alerted me to several compliance issues I had no idea about, including the fact that I was missing a required state filing specific to my industry. The document analysis found issues my accountant completely missed. For anyone else with a single-owner S-corp, it's definitely worth checking out. I'm still using TaxBandits for the actual form filing, but taxr.ai has made the whole process so much clearer.
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Marcelle Drum
I feel your pain with S-corp payroll. After trying to DIY and then overpaying for a full-service provider, I was about to give up. Then I discovered https://claimyr.com which helped me get direct access to an IRS specialist who answered all my S-corp payroll questions. I had been on hold with the IRS business line for HOURS trying to get clarity on some S-corp payroll deposit requirements, but Claimyr got me connected to an actual IRS agent in under 20 minutes. They have this demo video at https://youtu.be/_kiP6q8DX5c that shows exactly how it works. The IRS agent walked me through exactly what forms I needed for my single-member S-corp and the proper way to handle owner payroll. She even explained some S-corp specific deductions I didn't know about that saved me a ton on my taxes.
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Tate Jensen
•Wait, how does this work exactly? Do they have some special connection to the IRS or something? I've literally spent entire days on hold with the IRS and never got through.
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Adaline Wong
•This sounds fake. There's no way to "skip the line" with the IRS. Everyone has to wait on hold like the rest of us. And even if you do get through, most agents don't know the specifics about S-corp payroll requirements.
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Marcelle Drum
•They don't have special connections to the IRS - they use a technology that navigates the IRS phone tree and waits on hold for you. When an agent finally picks up, you get a call back and are connected directly to the agent. It's basically like having someone else wait on hold instead of you. The key is that they know which specific IRS department handles S-corp issues and exactly how to navigate to that department. When I called on my own, I kept getting transferred around. And you're right that not all IRS agents know S-corp rules, but by getting to the right department, I was connected with someone who specifically handles business tax issues.
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Adaline Wong
I have to publicly eat my words here. After my skeptical comment, I decided to try Claimyr just to prove it wouldn't work - and I'm shocked. After being on hold with the IRS for 3+ hours the previous week with no success, Claimyr got me connected to an actual IRS business tax specialist in about 15 minutes. The agent answered several questions I had about S-corp reasonable compensation requirements and helped me resolve an issue with a missed 941 filing that had been stressing me out for months. They even set up a payment plan for the penalties that was much more affordable than I expected. For anyone dealing with S-corp tax questions or problems with the IRS, this service is absolutely worth it. I've spent so many wasted hours on hold over the years that I wish I'd known about this sooner.
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Gabriel Ruiz
I've been using TaxBandits for my single-member S-corp for about two years now, and it's been pretty solid. The interface isn't the most intuitive, but once you get used to it, it's straightforward. I pay myself quarterly, and the cost is reasonable compared to the full-service options. One tip - make sure you set up email reminders for all the filing deadlines. They have this feature but it's not turned on by default. I missed a quarterly filing deadline my first year because I didn't have the reminders set up, and the late fees were a pain. Also, if you're in a state with complex payroll tax requirements (I'm in California), you might want something more comprehensive. TaxBandits handles the federal stuff great, but some of the state-specific forms were a bit tricky to figure out.
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Misterclamation Skyblue
•Do they offer direct deposit for the payroll? And how much do they charge for a single-person S-corp approximately?
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Gabriel Ruiz
•They don't handle the actual payment processing like direct deposit - remember it's mostly a tax forms filing service, not a full payroll processor. You'd need to set up the payments yourself through your bank. Since I'm just paying myself, I just transfer money from my business account to my personal account on paydays. For a single-person S-corp, I pay around $150-180 per year total for all the quarterly and annual filings. It's way less than the $50+ per month that full-service providers were quoting me. They do have different pricing tiers depending on which specific forms you need, so your cost might vary slightly.
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Peyton Clarke
Honest opinion - for a truly single-member S-corp with no employees, TaxBandits is good but I'd also seriously consider just using a full-service bookkeeper who specializes in small S-corps. I tried the DIY route with TaxBandits for a year and while it worked fine, I found I was spending too much of my valuable time figuring out payroll calculations. I now pay a bookkeeper about $150/month who handles all my S-corp bookkeeping, payroll, and tax filings. She uses TaxBandits on the backend actually, but handles all the calculations and submissions. For me, the time savings was worth the extra cost. The big payroll companies (Gusto, ADP, etc.) are definitely overkill for a single-member S-corp though. They're designed for businesses with multiple employees and have features you'll never use.
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Vince Eh
•That's actually a really good point. Do you have any tips for finding a bookkeeper who specializes in S-corps? I've found that a lot of general bookkeepers don't really understand the specific requirements.
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Zara Khan
I'm in exactly the same situation with my single-member S-corp! After reading through all these responses, I'm leaning toward trying TaxBandits first since the cost seems reasonable at around $150-180/year. The quarterly payroll schedule makes sense for cash flow too. One question I haven't seen addressed - how do you all handle the actual payroll tax deposits? Do you just calculate them yourself and pay online through EFTPS, or does TaxBandits help with that part? I'm worried about missing deposit deadlines since I know the penalties can be steep even for small amounts. Also, has anyone tried combining TaxBandits with QuickBooks for the record keeping side? I'm already using QB for my regular business bookkeeping, so I'm wondering if there's a good workflow that connects the two.
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Mateo Sanchez
•Great question about payroll deposits! TaxBandits doesn't handle the actual deposit payments - you'll need to make those yourself through EFTPS (Electronic Federal Tax Payment System). For a single-member S-corp, you're typically looking at monthly or semi-weekly deposits depending on your payroll amounts, but with smaller amounts you might qualify for quarterly deposits. The key is setting up EFTPS in advance and marking all the deposit deadlines on your calendar. I use a simple spreadsheet to track when deposits are due based on my payroll schedule. The IRS has clear guidelines on their website about deposit schedules. As for QuickBooks integration, I've found it works well to run payroll calculations in QB and then use those numbers in TaxBandits for the actual form filing. QB can generate the payroll reports you need, and then you just transfer those amounts into the TaxBandits forms. It's not seamless integration, but it creates a good paper trail for your records.
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