If you count yourself among the roughly 16 million self-employed people in the United States, you are also someone who needs the best payroll service for self-employed workers. Starting any new business requires strategic planning. What entrepreneurs tend not to find thrilling is doing administrative tasks, such as running the company’s payroll. If you are in business for yourself, you cannot afford to overlook the importance of paying yourself the right amount of money. You also need to make sure you correctly run payroll. Unlike when paying an employee, self-employed workers pay themselves by taking a small business owner’s draw.
Self-employed workers can utilize Advanced Micro Solutions’ tools to complete the otherwise routine payment task. The best payroll service for self-employed workers is an intuitive, user-friendly software. This tool will allow you to keep track of all tax and payroll requirements, no matter your industry.
How Do You Pay Yourself When You Are Self-Employed?
Review the IRS’ definition of self-employed workers. You should also make yourself aware of any self-employed tax obligations. The requirements often include filing an annual tax return and paying a quarterly estimated tax. Follow these next steps if you qualify as self-employed:
Open a Business Bank Account
Creating a separate bank account will help you keep your company’s funds separate from your own. Most banks will request an Employer Identification Number, a legal business name, your business’s address, your personal identification, and evidence that you filed a “Doing Business As,” or DBA.
Establish Your Payment and Payment Schedule
The best payroll service for self-employed workers is a software tool that offers flexible timetable options. Whether you pay yourself bi-weekly or monthly, determine when you will pay yourself based on your financial needs. Ask yourself when you need the funds most, which means considering important money deadlines like tuition or mortgage payments.
Transfer your “paycheck” from the business’s account to your personal bank account on payday. Getting reliable payroll software will help you to streamline the transfer process. You can set up an automated, recurring transfer.
Pay the Self-Employment Taxes
By now, you’ve probably realized that you do not withhold taxes from your payments. You must make estimated quarterly tax payments to the IRS, as well as to your state and local tax agencies.
Self-Employment Payroll Support with AMS
Paying yourself as a small business owner does not pose a challenge if you have the best payroll service for self-employed workers. If you encounter any difficulties, take a breath to refocus and determine the tools that you need. Our accounting and payroll software shows multiple state and federal tax liabilities whenever you open the View command. You can also record state and federal tax deposit information, along with any disbursements.
Adding AMS Payroll to any accounting suite will provide more robust support for first-time small business owners. If you have questions, you can review the Frequently Asked Questions page or call customer support at (405) 340-0697. For a hands-on approach, try AMS’ free 1099-etc. Demo. Explore the demo for insight into what software package can best accommodate your self-employment needs.