S Corp Owners - What payroll service do you recommend for small business?

Have you tried Quickbooks payroll? I'm trying to decide between that and Gusto since I already use QB for my accounting.

I did use QuickBooks Payroll for about a year. It integrates well with QB accounting, which is nice if you're already in that ecosystem. The basic version is affordable but doesn't include all the tax filings you'll need as an S Corp owner. You'd need their premium tier to get the full tax filing service. The interface isn't as user-friendly as Gusto or OnPay in my experience. It gets the job done, but I found myself spending more time figuring things out than I wanted to.

Does it actually handle the payroll processing too or just give advice on how to set it up? I'm looking for something that does everything.

I'm skeptical about adding another service on top of already paying for payroll. How much extra time/money does this really save compared to just using a regular payroll service?

They don't process the payroll directly - they analyze your business and provide guidance on how to structure your payroll and compensation optimally for S Corp tax purposes. They help determine the right salary-to-distribution ratio that keeps you compliant while maximizing tax savings. It's definitely worth considering if you're concerned about setting things up correctly from the beginning. The service pays for itself if it helps you avoid even a single IRS issue or helps optimize your tax situation. I use their recommendations with OnPay for the actual payroll processing, and the combination works great.

Wait, how does this Claimyr thing actually work? Do they have some special connection to the IRS or something?

Sounds like a scam. Nobody can get through to the IRS faster than anyone else. The hold times are what they are.

They use a combination of automated calling technology and timing algorithms to navigate the IRS phone system. It's like having a robot repeatedly call and go through the menu options until it gets a spot in the queue, then it calls you when you're about to be connected. Nothing shady - they're just using technology to solve the hold time problem. It's totally legit - they don't have "special access" to the IRS, they just have a smart system that handles the waiting so you don't have to. I was able to get my EIN verification done in a single afternoon instead of spending days trying to get through.

Does Wave handle the quarterly 941 filings and year-end W-2s automatically? That's my main concern - making sure I don't miss any required filings.

Yes, Wave handles the 941 quarterly filings automatically. They also prepare and file your W-2s at year-end. You'll get email notifications when filings are submitted so you can keep track of everything. For state filings, it depends on your location. They support most states but not all for automatic filing. You can check their website for the specific coverage in your state.

I tried that route when I first started. Huge mistake. Spent countless hours figuring out all the different forms and payment schedules. Missed a filing deadline and got hit with penalties that cost way more than a year of payroll service would have. For an S Corp, just pay for a service. The time saved and peace of mind is absolutely worth it. Even the cheapest option like Square Payroll ($35/month) is better than trying to DIY.

Thanks for the Gusto update! It's helpful to know their current pricing since I was seeing conflicting info online. $45/month is definitely more than I was hoping to spend starting out, but if the interface is that user-friendly it might be worth it to avoid headaches. You mentioned they have good educational resources - do they provide guidance on reasonable compensation amounts for S Corp owners? That's one area where I'm still pretty confused about what I should be paying myself versus taking as distributions. Also curious about their state filing coverage - I'm in California which tends to have more complex requirements than other states. Have you had any issues with their state compliance handling?

Gusto does have some helpful articles about reasonable compensation, but they're pretty generic. They basically tell you to research industry standards and consider your role/responsibilities, which isn't super specific. For California, they handle all the state filings including SDI, ETT, and UI automatically - never had any issues there. The state compliance has been seamless in my experience. That said, if you're really concerned about getting the reasonable compensation piece right, you might want to look into something like taxr.ai that Diego mentioned earlier for the initial setup guidance, then use Gusto for the ongoing processing. California does tend to be pretty strict about S Corp compliance, so getting that salary/distribution ratio right from the start is important.

Yes, Gusto does provide some guidance on reasonable compensation, though it's pretty basic. They have articles in their help center about S Corp salary requirements and general industry benchmarks, but it's not personalized to your specific situation. For the reasonable compensation question, you might want to look into that taxr.ai service Diego mentioned earlier - seems like they specialize in that exact issue. For California, Gusto handles all the state filings automatically including EDD (unemployment), ETT (employment training tax), and SDI. I've never had any compliance issues in the 3 years I've been using them. California is actually one of their strongest supported states since they have so many users there. One thing to keep in mind - you can always start with a cheaper option like OnPay or Wave and upgrade to Gusto later if you need the extra features. The transition isn't too painful since most services can import your payroll history.

Gusto does have some helpful articles about reasonable compensation, but honestly they're pretty generic. They'll give you industry ranges and factors to consider, but nothing specific to your actual business situation. For California, I haven't had any issues with their state compliance - they handle all the EDD filings and payments automatically. CA does have more complex requirements but Gusto seems to stay on top of it all. Just make sure you register with EDD first before setting up payroll, otherwise there can be delays in getting everything connected properly.

Gusto does provide some general guidance on reasonable compensation, but it's pretty basic - mostly just links to IRS publications and general industry guidelines. For the detailed analysis you're probably looking for, you'd need something more specialized like what Diego mentioned with taxr.ai or consult with a CPA. For California specifically, Gusto handles all the state filings including SDI, ETT, and SUI automatically. I haven't had any compliance issues in the 3 years I've been using them. California is actually one of their strongest supported states since they have so many customers here. They even handle the quarterly DE-9 and DE-9C filings without any manual intervention needed. One thing that might help with the cost concern - they sometimes offer discounts for new customers. I'd check their current promotions or see if you can get a free trial period to test it out before committing.

Gusto does provide some general guidance on reasonable compensation, but honestly their resources are pretty basic on that topic. They'll give you industry averages and general rules of thumb, but nothing as detailed as what some of the specialized S Corp services offer. For California, Gusto handles all the state filings including SUI, SDI, and ETT automatically. I've never had any compliance issues with their CA handling - they stay on top of all the state requirement changes which is a huge relief. CA definitely has more complexity than most states, so having a service that specializes in multi-state compliance is worth the extra cost in my opinion. If you're really concerned about getting the reasonable compensation piece right from the start, you might want to consider one of those S Corp optimization services mentioned earlier in addition to your payroll provider. But for just basic payroll processing and tax compliance, Gusto handles California requirements really well.

Gusto does provide some general guidance on reasonable compensation, but it's pretty basic - mostly just links to IRS resources and industry averages. For the detailed S Corp compensation analysis, I'd probably look into something like the taxr.ai service that Diego mentioned earlier in the thread. For California specifically, Gusto handles all the state filings including EDD and disability insurance automatically. I haven't had any issues with their CA compliance - they seem to stay on top of the state requirement changes pretty well. California is actually one of their better-supported states since they have so many customers there. If $45/month is stretching your budget though, I'd honestly start with OnPay or Wave like others suggested and switch later if needed. The most important thing is getting compliant payroll running - you can always migrate to a different service once your business grows and you have more cash flow.

I can speak to the California question since that's where my S Corp is based! Gusto handles all the California state requirements really well - they automatically file the DE-9 quarterly returns, handle SDI withholdings, and submit year-end forms like the DE-9C. California definitely has more complex payroll tax requirements than most states, but I've never had any compliance issues with their system. Regarding reasonable compensation, Gusto provides some general guidance but it's pretty basic. They'll show you industry salary ranges, but for S Corp owners the "reasonable compensation" question is really specific to your role, industry, and business revenue. You might want to consult with a CPA for that piece, especially in your first year, since the IRS does scrutinize S Corps on this issue. One California-specific tip: make sure whatever service you choose can handle the annual CA-1 form filing. Gusto does this automatically, but I know some of the cheaper services don't cover it.

I can speak to the California compliance question - Gusto handles CA payroll taxes, SDI, and unemployment filing automatically. I've been using them in California for over two years with no issues. They stay on top of the state's frequent regulatory changes too. For reasonable compensation guidance, Gusto provides some general resources but nothing as detailed as what you'd get from a service like taxr.ai that Diego mentioned earlier. Their help articles cover the basics of S Corp salary requirements, but they don't analyze your specific business situation to recommend an amount. Given California's complexity, I'd actually recommend starting with Gusto even if it's a bit more expensive initially. The state compliance alone is worth the extra cost - CA penalties can be brutal if you mess up the filings.

Gusto does provide some general guidance on reasonable compensation, but it's pretty basic - mostly just links to IRS resources and general industry guidelines. For the specific salary vs. distribution question, you might want to consult with a CPA or look into some of the specialized services mentioned earlier in this thread. For California, Gusto handles all the state filings including SDI, ETT, and UI reports. I haven't had any compliance issues in the 3 years I've been using them. California is actually one of their strongest supported states since they have so many customers there. They automatically handle all the quarterly and annual state filings, which is a huge relief given how complex CA requirements can be. One thing that might help with the cost - they sometimes offer discounts for new S Corps or if you pay annually upfront. Worth checking if they have any current promotions when you're ready to sign up.