Payroll & Compliance In Redding, CA
Payroll That Never Falls Out of Sync
Running payroll properly involves far more than just cutting checks. There are ever changing compliance reporting deadlines. Federal deposits (941), quarterly reporting for Federal and State (EDD). New hire reporting, year-end W-2s, workers’ comp audits, and more. Susan offers full service payroll in Redding allowing you to focus on the practical side of your business.
- CA License #96754
- Part of your accounting package
- Serving Shasta County Since 2007
Before payroll was managed
Books, tax returns and filings all match: Every quarter
Payroll Looks Simple, But Compliance Isn’t
Most small business owners consider payroll to be a software issue. Find an application, link a bank account, and run the numbers. This is correct, but basic payroll software doesn’t come close to doing everything that you need done.
- Payroll software that files but doesn't coordinate. Some of the programs that process checks include QuickBooks Payroll, Gusto, and ADP. They don't reconcile payroll to your books, identify misclassified workers, or flag if your wages account doesn't match what you reported on the 941.
- Piling up of quarterly filings that go unnoticed. The 941, DE9, DE9C, and FUTA 940 at year-end. They all have their own deadlines, deposit schedules, and penalties. One missed deposit is a percentage of payroll, and they add up fast.
- Unexpected year-end. W-2s are due January 31. Those include wages, tips, federal withholding, social security, state income tax, and SDI, which all need to be in sync and correct. If the books and payroll are done separately throughout the year, then January becomes a scramble.
All of this is quite common. It is really difficult to manage payroll well if it is not integrated with the rest of your accounting.
Federal and CA state filings
quarterly federal and state
W-2 deadline every year
- Late federal deposit: 2-15% of the deposit amount, depending on how many days it is late.
- Trust fund penalty: If payroll taxes are not deposited, the owner will be held personally liable, even if the business is an LLC.
- W-2 late filing penalty (state penalty + federal penalty) is a flat fee of $60-$310 for each employee per form.
- Worker Misclassification Penalties: Back taxes, interest & penalties both by the IRS & EDD, because who you thought was a contractor worker was really an employee.
Redding Payroll Service, Every Filing and Deadline Handled For You
Payroll and tax compliance should go hand in hand. They should also be reconciled regularly before tax filings are made to ensure deposits are accurate reducing the chance for penalties. Depending on your business entity type and amount of payroll the IRS will determine how frequently you must make payroll tax deposits. Having the same person who manages your books, payroll and tax compliance is the most efficient way to keep accurate records.
- Payroll processed on your timeline: Weekly, biweekly or monthly; direct deposit and pay stubs provided.
- Quarterly returns and timely filing of federal payroll tax to avoid late-deposit penalties.
- Filing of federal unemployment (FUTA) on an annual basis, with reconciliation to what was deposited throughout the year.
- California EDD filings: Quarterly reports (DE9 and DE9C) and UI and SDI deposits on the correct state schedule.
- Preparation of year-end W-2s and W-3s with wages checked against the books prior to filing. No January surprises!
- All new hires reported to the California New Employee Registry on time.
- Compare monthly payroll to books to ensure wages, employer taxes, and benefits withheld match QuickBooks and are included in year-end correctly.
- When the annual premium audit comes, workers' comp audit support is available, with payroll documentation organized and ready.
Payroll is not a standalone service; it is included in the Small Business Accounting retainer. Here’s why that’s important:
- Wages are automatically posted to the correct accounts, with no manual journal entries between systems
- The 941 and books agree before the return is filed
- W-2 wages are directly related to the tax return
- One person is aware of the whole situation, not two systems that never communicate
Payroll Works Better Included In Accounting
Software or payroll processor, no accounting coordination:
- All payroll processed and checks issued
- Filing of federal and state documents
- Payroll reconciled to books
- Payments based on tax returns
- Worker classification review
- IRS or EDD notice response
- Tax return prepared by the same CPA
Efficiently manage books, payroll and compliance all in one place, under the control of one CPA.
- All payroll processed and checks issued
- Filing of federal and state reporting
- Payroll reconciled to books on a monthly basis
- Wages linked to tax return at the end of the year
- Worker classification review
- IRS or EDD notice response included
- Tax return prepared by the same CPA
Incorporates forward-looking financial strategy in the managed package
- Everything in the accounting package
- Monthly financial reviews
- 90-day cash flow forecasting
- Analyze payroll costs for hiring decisions
- Annual budget and tax planning
- Lender and SBA loan support
Payroll is not available as a stand-alone service. A quick chat will determine if the accounting package or the advisory package is the right fit for your business.
Payroll Involves Employer Liability
Most of the payroll services are processing services. They do the numbers and complete the forms, but don’t read the bigger picture. A licensed CPA does payroll differently since payroll goes directly into your books, your tax return, and your exposure to federal and state agencies.
If the same CPA is responsible for payroll and books, the wages will post each month, employer tax liabilities will be in real time, and the books will be accurate when the quarter ends. In the case of separate providers, this reconciliation is virtually never done until there is an issue.
Susan can respond as your licensed representative if an EDD payroll audit is opened or if a 941 discrepancy is detected in your payroll, resulting in a notice. A payroll processor or software provider does not have the legal right to represent you. This protection is included in the relationship.
Hiring an employee is not just an HR affair. It affects your cash flow, your tax rate, your workers’ comp premium, and your EDD rate. Susan can show you what your new employee will cost you before you make the hire.
Books, payroll, compliance, and tax deposits are all included. The cost is dependent on the number of employees, how often payroll is run, and the number of transactions.
Payroll can't be purchased as a sole service. This is because it is integration is recommended.
The best way to determine what services you will benefit most from, is to book a meeting to discuss your situation with Susan.
How Payroll Setup Works
You provide an overview of where you are, including the number of employees, payroll software system you’re using, and if current filings are made. Susan asks some specific questions and provides you with a realistic assessment of what the engagement would entail and what it would cost.
Susan will look at your current payroll system prior to the first pay run to ensure that previous payroll filings have been completed in a timely manner.
Payroll is synced with your QuickBooks configuration and wages, employer payroll taxes, and benefit withholdings are posted properly each pay period. This is how the books and the compliance reports agree without having to reconcile them at quarter-end.
All paychecks, quarterly filing, and year-end forms are processed on time. You don't have to keep an eye on due dates or deposits. Your attention stays on the business.
Common questions about payroll with Susan.
Payroll is not all about processing. It needs to be coordinated with your books, chart of accounts, and tax return. If these are dealt with independently, discrepancies build up and emerge as issues at the end of the year, or when you are audited. Susan only provides payroll as a part of the accountancy package.
Not necessarily. It depends on the setup. Certain payroll systems integrate seamlessly with QuickBooks and save on manual work. Others develop problems with reconciliation that are more complicated than they are worth. After reviewing what you’re currently doing, Susan will be honest about whether you should keep it or if you should switch things to be more cost effective.
The most common areas covered in California EDD payroll audits include worker classification (are your contractors really employees or contractors as required by AB5 and the common-law test?) and payroll reporting accuracy (are your DE9 and DE9C filings accurate of what you actually paid?). As part of the service Susan can represent you in front of the agency if a formal audit is opened.
941 refers to the federal quarterly payroll tax return. It typically reports four times a year the Social Security, Medicare, and federal income tax withholding, and reconciles with your payroll tax deposits. The 940 represents the annual Federal Unemployment (FUTA) return, which is completed and filed once a year. Both are required if you have employees. California also has quarterly equivalents in the form of EDD (the DE9 and DE9C). Susan takes care of all of them as part of the package.
Contractors and employees are subject to separate tax and reporting requirements. Payroll withholding, tax matching by the employer, and the entire quarterly filing process are needed for W-2 employees. 1099 contractors will be issued a 1099-NEC at the end of the year. No withholding will be required, but classification is important. Many workers who are classified as contractors do not meet the legal definition of a contractor under California law (AB5) and IRS guidelines. Misclassifying employees is one of the most prevalent and costly payroll errors.
Yes. Filing requirements do not depend on the number of employees. One employee still requires reporting compliance (941 forms, the EDD forms, a year-end W-2, and payroll deposit schedules).
Payroll managed correctly, from the start.
Schedule your meeting to learn how managed payroll and compliance can benefit you.