Payroll
Payroll: Do You Really Need It?
Not every business needs payroll. For example, if you’re an LLC that’s a disregarded entity or a partnership, you shouldn’t pay yourself through payroll. Instead, you’ll take what’s called draws. This just means moving money from your business account to your personal account. No taxes are taken out when you do this, so it’s smart to work with an accountant to figure out how much you should set aside for taxes. That way, tax time won’t catch you off guard.
If you’re an S corp, C corp, or an LLC taxed as one—or if you have employees—then yes, you need payroll. Doing payroll manually is not only time-consuming, but mistakes can be expensive to fix. This is where payroll software comes in handy.
Choosing a Payroll Service
Most payroll companies offer similar features, so it’s all about finding the right balance of service and price. We regularly recommend two services:
- Patriot Payroll
They’re hard to beat on price and service. Plus, they have a great accountant platform, making it easy to invite your accountant for regular help or year-end reports. If you’re interested, you can use this link to get 30 days free and 50% off for 3 months: Patriot Payroll. - SurePayroll
This is our top recommendation. They’re similar in service and only slightly more expensive, but they often run incredible promotions, like six months of free payroll (buy one month, get one free for the first year). If they’re running this deal, it’s worth signing up. Use this link: SurePayroll. After signing up, email us at info@raptllc.com with your contact info so we can connect you with our account rep. He’ll ensure your onboarding is seamless—our clients rave about him!
What If You Only Need to Pay Contractors?
If you’re only paying contractors and not employees, payroll might not be the best option for you. Since there are no taxes to withhold for contractors, using a payroll service just for this can get expensive. But did you know there’s a way to pay your contractors for free using ACH?
We recommend Nickel Payments—it’s what we use. If you pay contractors via ACH and aren’t sending more than $25,000 at a time, Nickel doesn’t charge any fees. That’s right—free ACH payments!
Nickel also offers an additional layer of security with their approvals feature. If you have someone managing payments for you, you can set a dollar limit. For anything above that limit, Nickel will email you for approval before the payment goes out. This feature protects both you and your business. We offer this service to some of our customers, and it’s been a game-changer for peace of mind.
Nickel’s customer service is excellent, too. If you’d like to sign up, here’s our affiliate link: Nickel Payments.
Need Help?
Not sure if payroll is right for you? Or maybe you don’t want to manage it yourself? We’re just a call or email away. Let us show you why so many businesses trust us with their payroll management.
