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I run a small US-based startup, (an S Corp), I am also a contractor of this business. Am I able to withdrawl money from the main business banking account and pay myself (a contractor) without writing a check up? I will, of course, document these payments on both ends when taxes come around. I recognize a check is more traditional, but it seems silly to write myself a check everytime I pay myself. Thank you for any input! |
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How you withdraw money, technically, is of no importance. But you have to pay yourself a reasonable salary. You cannot pay yourself as a contractor for work performed for your S-Corp. Yes, it means you'll have to pay payroll taxes and expenses. |
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As mentioned, you're an employee so you need to take funds out of your s-corp as an employee. I'd recommend using Intuit Online Payroll to pay yourself as an employee. For Costco members, it's about $25 per month ($39 if you purchase from their web site) for up to 5 employees. Intuit will help you setup yourself as an employee, enable you to perform really easy direct deposit pay checks with all the proper payroll deductions, do all the federal and state filings for you (with simple email approval reminders), and issue you a W2 at the end of the year. It's a very slick, easy to manage system that takes all the headaches and worries out of employee payroll. I don't work for Intuit, so there's no conflict of interest on my part. My company publishes employee time and attendance software (Virtual TimeClock). We regularly help customers that are just getting into business and they often ask about moving employee timecards from our software into an easy payroll solution. We've found no better service for startups looking for easy, quick, cost effective employee paychecks. HTH. |
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