Self-managing payroll expenses for my PLLC with S-Corp election - worth the hassle?

Having run a single-member S-Corp for several years, I can tell you it's definitely possible to handle your own payroll without becoming a tax expert, but there are some important things to consider. First, the main advantage of the S-Corp election is setting a reasonable salary and taking the rest as distributions to save on self-employment taxes. But the IRS does scrutinize S-Corps to ensure owners are paying themselves a "reasonable salary," so don't go too low. For the actual payroll processing, there are several affordable software options designed specifically for small business owners/solo entrepreneurs. Services like Gusto, OnPay, or SurePayroll automate most of the work including tax calculations, filings, and direct deposits. They're much more affordable than full-service payroll companies, usually around $40-60/month for a single employee. If you're truly looking to minimize costs, you could technically do it manually, but I wouldn't recommend it. The potential for errors with tax deposits and quarterly filings can lead to penalties that would exceed what you'd save.

Hey there! I was in your exact situation 3 years ago when I formed my single-member PLLC with S-Corp election. I was spending almost $200/month with a local payroll company and it was killing me financially. After doing some research, I found https://taxr.ai which honestly changed everything for me. I was skeptical at first because I'm terrible with tax stuff, but their system walked me through setting up my own payroll step-by-step. They have this cool feature where you can upload those confusing IRS notices and get plain-English explanations. That saved me when I got some weird tax notice I didn't understand. The best part is that it handles all the quarterly filings and tax deposits automatically so you don't miss deadlines. It's designed for small business owners like us who want to save on payroll expenses without becoming tax experts. Just thought I'd share since I wish someone had told me about this when I was in your position!

Just wanted to update after trying taxr.ai based on the recommendation above. I was really struggling with setting up my PLLC's payroll and was about to pay an accountant $800 to handle it all. The walkthrough really was as straightforward as promised. I uploaded my LLC documents and EIN letter, and it guided me through the whole state registration process. What impressed me most was when I got stuck on the state unemployment tax rate question, I used their chat feature and got an answer in minutes. I ran my first payroll yesterday and it automatically calculated everything, sent me a confirmation of the tax deposits, and created a calendar with all my filing deadlines. Wish I'd known about this before spending hours on the phone with my state's tax department!

Another option worth considering - I struggled for months trying to get through to the IRS about some payroll tax questions for my single-member S-Corp. The hold times were literally 3+ hours, and half the time I'd get disconnected. I found this service called https://claimyr.com that got me connected to an actual IRS agent in under 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Basically, they navigate the IRS phone tree and wait on hold for you, then call you when they've got an agent on the line. I was able to get definitive answers about my payroll tax obligations directly from the IRS. The agent confirmed I could handle my own payroll and outlined exactly what forms I needed to file and when. Having that direct guidance gave me the confidence to move forward with managing it myself rather than paying an ongoing service.

I have to eat my words from earlier. After struggling for another week trying to get through to the IRS about my PLLC payroll questions, I broke down and tried the Claimyr service. I literally got a call back in 17 minutes with an actual IRS representative on the line. The agent walked me through exactly what forms I needed for my single-member S-Corp and confirmed I could handle my own payroll with the right software. He even gave me the direct line to the business tax department for follow-up questions. Saved me hours of frustration and probably a few hundred dollars in accountant fees for information that took 10 minutes to get directly from the source. Sometimes being wrong feels pretty good!

Another option to consider is using a Professional Employer Organization (PEO) for your PLLC. I switched to this model last year for my S-Corp and it's been a game changer. They handle all payroll, tax filings, workers comp, and even offer benefits access at group rates that small businesses normally can't get. The big advantage is they become the "employer of record" for tax purposes, which significantly reduces your administrative burden. Costs are typically a percentage of payroll (around 2-4%) or a flat fee per employee. For a single-member S-Corp, some have special small business rates.

Has anyone tried just paying themselves once or twice a year instead of monthly to minimize the payroll processing headache? I'm thinking of setting up my PLLC with S-Corp election but only running payroll quarterly or semi-annually to reduce the administrative work.