Payroll and taxes

I am not a tax expert or lawyer but in my opinion you are making it more complicated than it has to be. As a one truck owner/operator there really is no need for the corporation status, it does not protect your personal assets since as the owner you also drive therefore you "pierce the corporate veil", making you personally liable for everything the business does. All you are doing is setting up yourself to have to pay a corporate profit tax in addition to your payroll taxes instead of being taxed as a sole proprietor or single member LLC which gives you the option to combine your "business" and personal write-offs into one tax return, maximizing your possible deductions.

As for payroll tax deductions, they are not complicated, we do a group of several drivers in-house every week, Intuit is a good product but you may be able to find a local CPA that will do the same service cheaper, and that will be able to give you some better advice about tax structure for your business that a bunch of us truck drivers. We do use ADP, which is a national service, to process our direct deposits and electronically transfer our withholding funds to the states and IRS (we have employees in two states so have to withhold for both NY and PA), but as for the calculations, we do that all in-house.

Lastly, how should you pay yourself? That depends on you cash flow needs at home and with the business. Can you afford to only have a paycheck go home every other week, or do you need weekly income to the house to meet your personal bill due dates? There really isn't a tax advantage to bi-weekly vs monthly vs weekly pay periods and in some states it is dictated how often an employer must pay their employees, which is the relationship you have set up with the "S" corp. Do you have enough cash flow into and thru the business to make the weekly payroll deposits to your personal account and the required tax withholding deposits, or do you need to hold off on that to keep the money flowing for fuel? These are questions that can only be answered with an in-depth look at your business and personal financial positions.

I hope this helps and makes you ask yourself some serious questions. I am not trying to beat up on you, I have been where you are now and made some costly mistakes, just trying to help keep you from doing the same. Good luck and stay safe.

 

My advice is summed up in one sentence - get an accountant who can do all of this for you and teach you how to do it right.

 

As many O/O, is as many ways there is to do your payroll. Your individual financial requirements is what you need to understand to maximize your income. Seek professional help. Good luck.

 

What makes you think you will owe taxes at the end of the year? Don't assume anything. I've been leased on with my present co as a "S" Corp. since 2012. I've yet to pay one dime of taxes. It's a myth that you have to pay quarterly. You can if you want, but I haven't and my guy, who has been with me for 12 yrs, has never said anything about it. Haven't had to pay a penalty, so I'm not concerned.
In fact I got a REFUND this past year.
Stop fooling with those mickey mouse tax software gizmos. Get yourself a real pro, tax accountant as a previous writer said. You can't do taxes on the cheap. Make sure he understands the ins and outs of trucking.
Good luck.

 

i do my taxes ones a year and if you get good tax pro he'll tell you what can you write off, but it does not make any since to do them 4 times

 

How you pay yourself is up to you. I would do whatever works best for you. One major advantage of having a corporation with a sub chapter S election are the tax benefits. You can pay yourself a small salary and then pass through any profits as dividends. Since dividends are considered unearned income, they are not subject to social security tax and the accompanying employer contributions. That could save you 15% in taxes. You could also set up a 401k which would also help with the taxes and provide a much greater return than social security. You really should find a good accountant to help you set everything up. If you want to do things yourself, you can visit your local IRS office and they can tell you what is needed to file and pay your quarterly taxes. A CPA is well worth the money you would pay them to advise you. Remember, everyone has a different situation with different objectives. A third party, such as a CPA would be a good investment.