Payroll for S-Corp Owners and Small Businesses

Simplified, Compliant Payroll Solutions for Lean Teams

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Running payroll might seem like a basic admin task—but for S-Corp owners and very small businesses, it’s a high-stakes financial responsibility. Get it wrong, and you risk IRS penalties, overpayment of taxes, or underpayment of yourself. At Next Edge CPA, we specialize in payroll services tailored for S-Corp owners and teams with fewer than 5 employees.

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We’ll help you stay compliant, save time, and ensure you’re paying yourself the right way.

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Why Payroll Is Crucial for S-Corp Owners

One of the key requirements for S-Corp shareholders is paying themselves a reasonable salary. This isn’t just a suggestion—it’s an IRS mandate. The problem? Many S-Corp owners either don’t run payroll at all or do it incorrectly, exposing themselves to audit risk and fines.

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Here’s what we help S-Corp owners do:

• Set a reasonable salary based on industry standards
   

• Set up regular payroll and tax withholding
   

• Properly account for distributions vs. wages
   

• Stay in compliance with federal and state tax laws
   

• Avoid issues with the IRS over improper compensation
   

If you’re an S-Corp owner not running official payroll, it’s time to fix that—and we can help make it seamless.

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Small Team? You Still Need Payroll Done Right

Even if you only have a handful of employees—or just yourself—you’re still responsible for following strict payroll rules. That includes:

• Calculating and withholding federal and state taxes
   

• Issuing W-2s at year-end
   

• Submitting payroll tax filings (Forms 940, 941, state equivalents)
   

• Paying into Social Security, Medicare, unemployment, and more
   

• Keeping up with filing schedules and changing regulations
   

At Next Edge CPA, we handle all of it for you. You get the peace of mind of knowing your payroll is accurate, on time, and compliant—without the headache of doing it yourself.

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What’s Included in Our Payroll Service

Our payroll packages are built for the specific needs of solo owners and small teams. We handle everything from setup to filing:

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Payroll Setup

We create or clean up your payroll system to reflect your correct wages, business structure, and local tax rules.

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Payroll Processing

We run payroll on a regular schedule—weekly, bi-weekly, or monthly—based on what works best for you.

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Tax Withholding & Deposits

We calculate, withhold, and remit the appropriate federal and state taxes on your behalf.

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Quarterly & Annual Filings

We handle Form 941, state filings, and all required payroll returns. At year-end, we issue W-2s and reconcile your totals.

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Employee Additions

Need to add your first hire or onboard a part-time worker? We take care of the filings, new hire reporting, and onboarding setup.

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Built-In Compliance for S-Corp Payroll

Running payroll through your S-Corp isn’t just about getting paid—it’s about keeping your S-Corp status intact. The IRS expects you to:

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• Take a “reasonable” salary for the work you do
   

• Separate salary from distributions
   

• Withhold and remit the correct taxes
   

• File payroll tax returns consistently
   

We help you meet those expectations without overcomplicating the process. Many S-Corp owners also combine payroll with our monthly accounting and tax strategy services for seamless support.

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Benefits of Using Next Edge CPA for Payroll

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Total Compliance

We handle all federal, state, and local payroll filings accurately and on time.

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Time Savings

No more calculating withholdings, tracking deadlines, or wondering if you did it right.

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Audit Protection

We keep detailed payroll records and ensure your wages meet IRS “reasonable compensation” standards.

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Integration With Tax Strategy

As CPAs, we don’t just run payroll—we coordinate it with your tax planning to minimize liability.

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Affordable for Small Businesses

Our services are designed to be accessible to very small companies—without bloated pricing or unnecessary extras.

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Perfect for:

• S-Corp owners paying themselves a salary
   

• Startups with 1–3 employees
   

• Family-run businesses
   

• Professional services firms (consultants, designers, agencies, etc.)
   

• LLCs transitioning to S-Corp status
   

• Businesses hiring their first employee
   

If you’re small—but serious about doing things right—our payroll services are for you.

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How It Works

1. Initial Consultation
   We learn about your structure, current payroll setup (if any), and business goals.
    

2. Setup & Strategy
   We establish payroll systems that reflect your salary, tax obligations, and compliance requirements.
    

3. Ongoing Payroll
   We run payroll on your schedule and file all necessary tax returns.
    

4. Year-End Reporting
   We issue W-2s and payroll summaries that integrate cleanly with your tax return.
    

5. On-Call Support
   Have a question? We’re available year-round to guide you through changes, hires, or special scenarios.
    

 

Payroll, Done Right—Even for Small Teams

Payroll isn’t just for big companies. Even if you’re the only employee, running compliant, accurate payroll is essential for protecting your S-Corp status, avoiding IRS penalties, and keeping your business on the right track.

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Let Next Edge CPA take payroll off your plate. Contact us today to get started with payroll services built for lean teams and growing businesses.