How and why to set up a payroll.
Previously we’ve covered how you can potentially save money on taxes by incorporating your stream as an S-corporation. Please read up on it as there are some rules you need to make sure you’re following to actually get the tax benefit. The core concept to remember is that you wear two hats in your business. One is the owner who is responsible for making business decisions. The other is the employee who is actually providing the labor the business needs to earn income. That employee is paid via a payroll. One word of warning: This advice is based on the assumption that you're organized as an S-corporation and the only employees of the business are also owners. If your business has non-owner employees payroll gets significantly more complicated. A second…