Conversations with new business owners regarding paying themselves wages or hiring employees are often fraught with worry and anxiety. It is why, generally, we advise clients to start paying themselves wages after they’ve been in business for at least a year.
Why do we advise waiting a year to pay yourself wages?
New businesses often need that time to generate regular customers and revenue as there are numerous fees and costs associated with opening your business. Once clients hit the one year point is when we help them decide on an amount to pay themselves regularly, based upon their projected revenue. Paying FICA and state unemployment taxes can be substantial
After a year of paying themselves, we will advise, and help our clients plan for, an increase in the wages they pay themselves.
Our goal is always to work with our clients regarding planned wage increases and taxes. When it comes time for payroll taxes, we always contact our clients ahead of time to notify them of the amount they owe. When issues arise, whether they are payroll related or not, we always meet our clients where they are.
We are here for all your payroll needs. We can process payroll for you, which includes filing the applicable forms with the federal government, state, and local entities. Our payroll services can be tailored to your needs.
We also can act as a trusted advisor if you are just starting out your business and need to develop a plan as to when you’ll start paying wages, how much, etc.
If you’re in need of a CPA who is knowledgeable, professional, and trusted, contact us today, via email (firstname.lastname@example.org) or call us at 513-535-0100.