One of the most important decisions you’ll make as an owner is how and how much you’ll pay yourself. The law orders that you follow certain guidelines when it comes to compensation. There are two standard compensation methods that business owners can consider: an owner’s draw and a salary.

While it may seem like S corporations pay more in taxes, they usually pay less than sole proprietorships or partnerships with similar income levels because they are more profitable.

Independent contractors are responsible for paying federal payroll taxes on their own, but you do have the option of only paying them. When you use 1-800Accountant’s payroll service, we’ll automatically file and email them their 1099s at the end of the year with our contractor plan.

1-800Accountant’s payroll service is high-value and competitively priced. Our robust payroll service costs $979 annually with a $200 setup fee which is waived if you’re already registered with your state. Our accountants submit your payroll taxes every time we run payroll for no additional charge.

1-800Accountant offers payroll and our full suite of services to small businesses operating in every industry and in all 50 states. We do not currently offer our payroll services to small businesses that are operating outside of the United States.