Payroll Setup Guide for S Corp Using Gusto
Introduction
This guide will walk you through the process of setting up payroll for an S Corporation using Gusto. By following these steps, you will be able to automate payroll, optimize tax savings, and ensure compliance with minimal hassle.
Step-by-Step Instructions
Begin Payroll Setup
To start the payroll setup, ensure you are logged in as a member on the dashboard.
Set Up Payroll
Click on "Set up payroll" to proceed. This screen will provide you with an overview of the benefits, including automation and compliance.
Understand the Setup Context
You'll land on a screen that offers context about the payroll setup process, designed to be simple and straightforward.
Determine Your Annual Salary
The first step involves determining your annual salary based on reasonable compensation for your role, industry, and location.
Review Potential Distributions
After setting your salary, review the potential distributions. This helps in understanding the tax savings and potential benefits.
Use Gusto's Reasonable Compensation Tool
Utilize Gusto's tool to adjust and finalize your compensation, offering insights on distributions and payroll tax savings.
Input and Verify Company Information
Input all necessary company information, such as mailing and filing addresses. Verify these details to ensure accuracy.
Verify Company Bank Account
Verify your company bank account using Plaid, ensuring all financial transactions are set correctly.
Complete Employee Setup
If you are the only employee, confirm your personal details, including name, address, and social security number.
Handle Documentation
Proceed with necessary documentation, including signing forms and authorizations for direct deposit.
Choose Payment Method
Select how you wish to pay your employee(s), such as direct deposit or paper checks.
Finalize and Review Payroll Setup
Once all steps are completed, the review process will begin. Upon completion, you will be ready to start running payroll.
Conclusion
By following this guide, you have successfully set up payroll for your S Corporation using Gusto. This setup ensures streamlined payroll management, compliance with tax regulations, and optimized tax savings. You can now confidently run payroll for your business.