Establishing Payroll Systems
01.Paying Employees & Founders
If your business operates as a corporation (or is an S-Corp), active founders must receive payroll. You cannot simply write checks or take owner draws.
02.FICA and Tax Withholding
You must withhold federal income tax, Social Security, and Medicare (FICA) taxes from employee paychecks, and match the employer portion of FICA.
03.Using a Payroll Service
Automate payroll using a professional service (such as Gusto or ADP) to handle automatic tax calculations, filings, and W-2 issuance.