Fast, easy, accurate S-corp payroll.
Now that your small business has made it to the big leagues, it’s more critical than ever that your payroll is done right. Gusto takes complex S corporation payroll and tax calculations off your to-do list for good, so you can spend more time where it matters most.
How Gusto worksCreate account
Streamline your S corp
Save time, increase accuracy, and cut back on paperwork when payroll is automatic and taxes are taken care of.
We’re here when you need us
S-corp payroll and compliance can get complex, fast. Luckily, our friendly support team is here to answer your questions, give tips, and more.
We grow with you
From solopreneur to CEO, Gusto’s award-winning payroll and people platform makes it easy to grow your business without the headaches.
I recently changed to an S-Corp and needed to run payroll for myself as an employee. I wanted a system that was cost-effective, easy to use, and without features that I don't currently need. I also liked that Gusto handles tax reporting/payments, which was a feature not offered by others.
I have an S-corp with myself as the only employee. I tried using two well-known payroll software solutions and they were unable to accommodate my state's laws saying I'm not required to pay state Workers' Comp and unemployment. One company even said I could just pay these unnecessary taxes anyway! My tax preparer recommended I use Gusto. Once I sent Gusto a copy of my state's regulations they set my payroll accordingly and everything runs like clockwork now.
A friend recommended Gusto to me when I mentioned I was filing to become an S Corp. Their customer service was amazing and one of the main reasons I decided to go with Gusto. The price point is fantastic and the website is very easy to use. I had a million questions when I was trying to get my account all set up and every single agent I talked to was so helpful and didn't make me feel dumb for not knowing what I was doing. I've already recommended Gusto to other friends with small businesses.
Payroll for S-corp
Pay yourself like a boss.
Now that you’re both boss and employee, it’s time to get paid like one. With Gusto’s Payroll on Autopilot, your paycheck is out the door without lifting a finger—including automated retirement and benefits deductions. Need to pay yourself a little extra? Unlimited payroll runs, off-cycle and bonus payrolls, and two-day direct deposit are included with all our plans at no extra cost.
Automated & integrated
Lighten your load with automated taxes and built-in compliance.
With Gusto, your income, expenses, and deductions seamlessly sync with your favorite accounting software, and you can rest easy knowing all federal, state, and local payroll taxes including FICA and FUTA are calculated, filed and paid every time you run payroll. We’ll generate and send out all the necessary W-2s and 1099s come tax time, and unlike some other providers, we never charge extra for filing.
Got a compliance question? Our team of certified HR pros is just a phone call away.*
*Access to certified HR professionals comes included with the Premium plan, or is available with the HR add-on. But award-winning customer support is always included with all of our plans.
Scalable growth
Grow your business without growing complexity.
Whether you’re a team of one or one hundred, our intuitive, all-in-one platform is designed to save time and streamline admin while growing with you every step of the way. From accessing premium healthcare and retirement plans to hiring, onboarding, and paying both contractors and employees, we make it easy to scale your business without the headaches—or the hefty price tag.
FAQs
Of course! With Gusto’s S-corp payroll service, every time you pay yourself and your team, we will calculate, file, and pay all the necessary employment taxes at the federal, state, and local levels. We’ll also generate and send out any 1099s or W-2s come tax time. Just remember that when it comes to s-corp owner payroll, you’re still required to pay personal income taxes on any money you earn as an employee of your own business.
The best S-corp payroll software should automatically handle all federal, state, and local taxes. It should give you the power to handle any deductions each pay period, and give you options to access traditional benefits, whether you’re running single member S-corp payroll or you’re paying employees as well.
Once your business becomes an S-corp, the IRS requires you to pay yourself a “reasonable salary” if you actively participate in the operation of your business. If you’re a graphic designer in a major city, that might be $100,000 annually. You cannot pay yourself $10,000 and take the $90,000 as a shareholder dividend in order to avoid the employment taxes. You can choose how often you’d like to pay yourself as an employee (monthly, biweekly, etc.). When you run payroll for S-corp owner with Gusto, we’ll remit all federal, state, and local taxes to the necessary agencies.
When it comes to S-corp taxes, you’ll need to pay employment taxes for any employees you have, just like any other business. This includes when you pay yourself! There may also be state and local business taxes separate from payroll that it’s important to look out for. After your business has paid all of its employees, the rest is considered profit and can be distributed tax-free among shareholders at the end of the year. While S-corp dividends are not taxed at the corporate level, they are taxed as capital gains as part of the personal income of each shareholder.
While Gusto can make it easy to pay yourself and your team, S-corp accounting is complex, and it’s best handled by a tax professional. Instead of taking your income each month as a personal withdrawal, anything above your reasonable salary will be paid out as shareholder dividends and reported to the IRS on a Schedule K-1. Gusto will handle your payroll taxes, but Schedule K-1s are taxed through your personal income taxes.
You can fill out your Schedule K-1 using this step-by-step guide, but an accountant may save you money in the long run by finding additional business expense deductions and helping you avoid fines and penalties.
Best overall payroll software
"Gusto is the best payroll software solution for many small and midsize businesses thanks to its thorough automation, comprehensive payroll tools and optional employee benefits with built-in administration."
- TechRepublic, 2024
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