Payroll looks simple until a deposit is late, an employee is classified the wrong way or a quarterly return is missed. Payroll taxes are one of the areas where the IRS and state agencies add penalties quickly, because the money was withheld from employees and is owed to the government.
We help you set up payroll, run it, and keep the filings current, and because we also keep books and prepare taxes, your payroll records match everything else.
What payroll services include
- Setting up your business as an employer with the IRS and your state
- Employee onboarding information: Forms W-4 and I-9 and the details a payroll run needs
- Running payroll on your schedule and calculating withholding
- Federal and state payroll tax deposits and quarterly returns (such as Form 941)
- Year-end Forms W-2 and W-3, and Forms 1099-NEC for contractors
- Payroll reports for your books and for your tax return
Employees or contractors?
Whether a worker is an employee or an independent contractor depends on the working relationship, not on what you call it. Getting it wrong can lead to back payroll taxes and penalties. If you are not sure, ask us before you hire; we can explain the factors the IRS looks at.
State payroll requirements
Employers also register with their state for unemployment tax and, in some states, withholding. In Texas, unemployment tax is handled through the Texas Workforce Commission. Requirements differ by state, so we confirm what applies to where your employees work.
How it works
- 1
We confirm what your business needs
We ask how many employees you have, how often you pay them and which states they work in.
- 2
We set up payroll
We register or confirm your employer accounts and collect the information for each employee.
- 3
We run payroll and file
Each pay period we calculate pay and withholding, and we make the required deposits and filings.
- 4
Year-end is already done
W-2s and 1099s are prepared from the payroll records we have kept all year.
What we need from you
- Your EIN and business details
- Employee names, addresses, Social Security numbers and completed Forms W-4 and I-9
- Pay rates, pay schedule and any benefits or deductions
- Existing payroll records and prior payroll tax filings, if you already have employees
- Your state employer account numbers, if you have them
Not sure what applies to you? Send what you have and we will tell you what is missing.
Why work with BUTA Tax
- Tax preparation, bookkeeping, payroll, business formation and IRS help in one firm, so your records line up.
- A secure client portal for your documents and messages, available whenever you need it.
- Starting prices shown on this site and the questions that set your final price asked before you pay.
- An office in Frisco, Texas, and online service for clients across the United States.
Frequently asked questions
How much do payroll services cost?
It depends on the number of employees and how often you run payroll. Tell us about your team and we will quote it before you commit.
Do you file my payroll taxes?
We prepare and file the payroll tax returns and make the deposits we have agreed to handle. We confirm exactly which filings we are handling for you when we set up your payroll.
Can you help me start payroll for my first employee?
Yes. We help register your business as an employer, collect the employee paperwork and set up your first payroll run.
What about my contractors?
We can prepare Forms 1099-NEC for contractors you paid, and we can help you decide whether a worker should be treated as an employee or a contractor.
Is payroll connected to my bookkeeping?
It can be. Payroll records feed your books and your business tax return, and doing them together avoids mismatches at filing time.