S Corp owners often need to pay themselves what the IRS refers to as a “reasonable salary.” OnPay makes it easy to set up and pay yourself — with built-in tax withholdings and filings that help keep everything accurate, whether you run payroll monthly, quarterly, or annually. We even handle blank filings if there are quarters when you don’t run payroll.
Our team makes it easy to get started by handling all of the hard stuff, like migrating your payroll data. We can even help you set up accounting software integrations so payroll data syncs the way you want to the general ledger.
— Aileen, Faircrest Real Estate
Give the right people the right access. With six permission levels, you control who can see and manage your business’s compensation — whether it’s an outside advisor or a new team member.
All pay runs, filings, and tax forms are stored right in your account, so you always know what’s been filed and when. Even if you ever stop using OnPay, you’ll never lose track of your payroll history or important reports.
As an S Corp owner, you can pay yourself and also fund your future. Use your S Corp to contribute to health and retirement plans with every pay run.
Managing an S Corp means more than just running payroll – you need to balance salary and distributions, while keeping up with IRS requirements. OnPay’s all-in-one software helps you handle payroll, HR tasks, and benefits with ease so you can manage your compensation strategy with confidence.
OnPay gives you the flexibility to run things your way, without any sneaky fees or hidden surprises. We even offer special pricing for single-member organizations, if you’re only paying yourself a couple of times a year. Talk to us to learn more about how we can help.
Try OnPay out for yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.
If you’re an S Corp owner who works in your business, you’re generally required to pay yourself a reasonable salary and withhold payroll taxes like Social Security, Medicare, and income taxes. In addition, you’ll need to file quarterly tax returns (Form 941) and annual forms like W-2s and Form 940 for unemployment taxes. Yes, you can handle this manually, but most S Corp owners use a payroll service to automate the calculations, take care of filings, and reduce compliance risk and potential mistakes.
Yes, as an S Corp owner, you typically pay yourself a salary if you actively work in your business. The IRS requires that shareholder-employees receive a “reasonable salary” for the services they provide before taking any profit distributions.
The best way to pay yourself as an S Corp is a combination of salary and distributions. First, pay yourself a “reasonable salary” for the work you perform — this is subject to payroll taxes and reported on a W-2. Then, any additional profits can be taken as distributions, which aren’t subject to payroll taxes. Using a payroll system like OnPay ensures your salary is compliant, taxes are withheld correctly, and distributions stay clean and tax-efficient. Note that you should consult with a tax professional or financial advisor for specific guidance if you are unsure of your payroll, legal, or business needs.
S Corp payroll means paying yourself wages for the work you do. With OnPay, tax calculations, filings, and compliance are automated, leaving you free to take profit distributions. It’s easy to get started with no commitment, affordable pricing, and one month free.
S Corps need to withhold and remit both the employer and employee portions of Social Security and Medicare taxes (15.3% total), plus federal and state income taxes. You’re also responsible for federal unemployment taxes. To do this, you submit Form 941 quarterly for payroll taxes, annual W-2s for each employee (including yourself), Form 940 for unemployment taxes, and Form 1120-S for your S Corp’s yearly return.
You can get set up super fast – we’ll just need some basic details so our team can help assist you with your setup. And our in-house payroll experts will do all the heavy lifting. We’ll even enter any distributions or wages you’ve paid this year to make it easy to get up and running at your own pace.
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