Payroll services for S corporations

Q: Why use QuickBooks Payroll for S corporations

QuickBooks Online Payroll is the No. 1 payroll provider for small businesses, and it’s easy to see why.1 Access all your S corp payroll tax and benefits in one place, including workers’ compensation, powered by AP Intego.** Finally, enjoy some much-deserved peace of mind thanks to tax penalty protection, included with QuickBooks Online Payroll Elite.

Q: Why do S corps need payroll?

S corps need payroll because the IRS needs to have a way to collect taxes from the business. Because the business is separate from the business owner, they are not responsible for paying Social Security and Medicare taxes on distributions. Instead, the business owner is an employee and must take home a taxable income or S corp salary.

Q: How do S corporation owners get paid?

S corp business owners are required to pay themselves “ reasonable compensation ” for their contribution to the business. In other words, business owners must pay themselves whatever salary they’d pay anyone else to do their job—also called the market salary. As shareowners, S corp owners also take distributions, which are paid after all expenses (including their W-2 salary) have been paid.

QuickBooks gives S corps peace of mind with accurate payroll and tax penalty protection.

Laptop with the payroll overview screen displayed.

Check out these payroll service features

Error-free tax filing Same-day direct deposit Expert review Payroll tax calculations Payroll reports

Error-free tax filing

Let QuickBooks Payroll file your federal and state payroll taxes for you.** Enjoy added peace of mind with tax penalty protection, included with QuickBooks Online Payroll Elite.

Error-free tax filing

Let QuickBooks Payroll file your federal and state payroll taxes for you.** Enjoy added peace of mind with tax penalty protection, included with QuickBooks Online Payroll Elite.

Same-day direct deposit

Run payroll automatically after you complete the initial setup. Save time and money with same-day direct deposit.**

Learn about direct deposit.

Expert review

Let the experts review your payroll setup or do it for you. They can also offer step-by-step help when you need it.**

Payroll tax calculations

Spend time doing what matters most. With automated tax filings and payments, we’ll help you manage your taxes once you complete your payroll setup.**

Payroll reports

Clear financial reporting leads to better business decisions. Get real-time business insights in QuickBooks with income statements and payroll reports.

Laptop showing the Payroll overview page with tax penalty protection active.

S corp payroll taxes

Any S corp business owner can tell you S corp payroll taxes are complicated. This is why QuickBooks’ tax penalty protection is so important. Even if you experience errors that lead to tax penalties, QuickBooks can resolve those errors and reimburse penalties and interest.

List of taxes marked as paid and automatically paid by QuickBooks payroll.

Set up payroll for your S corp

S corps are unique because even if you’re the owner and sole employee of your business, you must pay yourself “reasonable compensation.” You also have to prove you paid that income with a Form W-2 at the end of the year. QuickBooks makes that easy, with automated tax payments and filings for federal and state payroll taxes.**

Why use QuickBooks Payroll for S corporations

QuickBooks Online Payroll is the #1 payroll provider for small businesses.¹ Access all your S corp payroll tax and benefits in one place, including workers’ comp (powered by Next)** and get peace of mind with tax penalty protection (included with QuickBooks Payroll Elite).**

Frequently asked questions

Why do S corps need payroll?

How do S corporation owners get paid?

Do S corp owners have to pay the unemployment tax?

All states require S corporations to pay state unemployment insurance. S corps must also pay Federal Unemployment Taxes (FUTA). As an S corp owner and employee, you must pay FUTA taxes for yourself, based on the IRS’s compensation laws for your business structure. The IRS determines the amount you owe based on your wages, which excludes other sources of S corp income, like distributions or dividends.

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Important offers, pricing details and disclaimers

Money movement services are provided by Intuit Payments Inc., licensed as a Money Transmitter by the New York State Department of Financial Services. For more information about Intuit Payments' money transmission licenses, please visit https://www.intuit.com/legal/licenses/payment-licenses/.

Guarantee

QuickBooks Online Payroll – Tax penalty protection: Only QuickBooks Online Payroll Elite users are eligible to receive the tax penalty protection. If you receive a tax notice and send it to us within 15 days of the tax notice, we will cover the payroll tax penalty up to $25,000. Intuit cannot help resolve notices for customers in Collections with the IRS because IRS Collections will only work with businesses directly. Additional conditions and restrictions apply. Learn more about tax penalty protection.

Accuracy Guaranteed available with QuickBooks Online Payroll Core, Premium, & Elite: We assume responsibility for federal and state payroll filings and payments directly from your account(s) based on the data you supply. As long as the information you provide us is correct and on time, and you have sufficient funds in your account, we’ll file your tax forms and payments accurately and on time or we’ll pay the resulting payroll tax penalties. Guarantee terms and conditions are subject to change at any time without notice.

Limited time offer terms

Discount: Discount applied to the monthly price for the QuickBooks Products is for the first 3 months of service, starting from the date of enrollment, followed by the then-current monthly list price. To be eligible for this offer you must be a new QuickBooks customer and sign up for the monthly plan using the “Buy Now” option.

**Features

Automated tax payments and filings: Automated tax payments and filing are available only for state and federal taxes. Enrollment in e-services is required. Local taxes require the user to print the forms and upload them to the necessary local sites. QuickBooks Online Payroll Core does not offer local tax payments and filings. Automatic filings for state new hire paperwork available in QuickBooks Online Payroll Premium and Elite only.

Same-day direct deposit: Available to QuickBooks Online Payroll Premium and Elite users. Payroll processed before 7 AM PST shall arrive the same business day (excluding weekends and holidays). Requires setup of direct deposit and bank verification. Same-day direct deposit may be subject to eligibility criteria. Deposit delays may vary because of third-party delays, risk reviews, or issues beyond Intuit’s control. Same-day direct deposit is available only for employees.

Expert review: Available upon request for QuickBooks Online Payroll Premium and Elite

Auto Payroll: Available if the setup for employees and the company are complete, all employees are salaried employees, all employees are set up on direct deposit, bank verification e-services are enabled, the account has not been on hold in the last 6 months, and the first payroll has been run successfully.

Workers’ comp administration: Benefits are powered by NEXT Insurance and require acceptance of NEXT Insurance's Privacy Policy and Terms of Use. Additional fees will apply. There is a monthly fee (currently, $5 per month) for QuickBooks Online Payroll Core users for the QuickBooks Workers' Comp Payment Service. This non-refundable fee will be automatically added to each monthly Intuit invoice at the then-current price until you cancel. The fee is separate from any workers’ comp insurance policy premium by NEXT Insurance. Workers’ Compensation Service requires an active and paid QuickBooks payroll subscription. Eligibility criteria applies to transfer active insurance policy broker of record, including insurance carrier, policy renewal date, and payment method. Workers compensation insurance is not available in OH, ND, WA and WY.

** Product information

QuickBooks Online Payroll mobile app: The QuickBooks Online Payroll mobile app works with iPhones, iPads, and Android phones and tablets. Devices sold separately; data plan required. Not all features are available on the mobile app and mobile browser. QuickBooks Online Payroll mobile access is included with your QuickBooks Online Payroll subscription at no additional cost. Data access is subject to cellular/internet provider network availability and occasional downtime due to system and server maintenance and events beyond your control. Product registration required.

Money movement services are brought to you by Intuit Payments Inc., licensed as a Money Transmitter by the New York State Department of Financial Services, subject to eligibility criteria, credit and application approval.

#Claims

1. QuickBooks Payroll is the No. 1 payroll provider for small businesses Based on the overall number of customers for QuickBooks Payroll products as of June 2020.