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Small company payroll services
Getting payroll wrong costs more than you think. A late EFTPS deposit triggers IRS penalties starting at 2%. Miss the quarterly filing and it gets worse. Federated Tax handles federal and state payroll processing, tax deposits, Form 941 filings, and W-2 preparation for small businesses. Flat monthly pricing, no per-run fees, full-service payroll handled by Enrolled Agents who do this every day. Book online or call now.
What You Get
What do small company payroll services actually cover?
Full-service payroll for a small business covers a lot more than cutting paychecks. Federated Tax calculates FICA withholding at 15.3% total (split employer and employee), handles federal and state income tax withholding, makes all EFTPS deposits on your IRS-assigned schedule, and manages every quarterly filing deadline through the year.
The payroll process includes new employee onboarding, gross-to-net pay calculations, direct deposit setup, and filing Form 941 by April 30, July 31, October 31, and January 31. W-2s and 1099-NECs both go out by January 31 each year. Federated Tax also handles state payroll tax registration when you hire across state lines, which creates separate withholding and filing obligations in each state.
Tax filing errors are one of the most expensive small business mistakes. Federated Tax reviews worker classification, flags potential misclassification issues before the IRS does, and keeps the whole compliance calendar so nothing slips. Call or book online today to get payroll running the right way.
What You Get
How does payroll service for small business work with Federated Tax?
Federated Tax sets up payroll in three clear steps. Most small businesses run their first payroll within 3 to 5 business days of the setup call.
Onboarding and data collection: Federated Tax gathers your EIN, state tax IDs, employee records, and any prior payroll history. The payroll system is configured for your pay frequency, federal deposit schedule, and state filing requirements in each state where you have employees. First payroll run and EFTPS enrollment: Federated Tax calculates gross pay, federal and state withholdings, and employer FICA contributions, then deposits payroll taxes through EFTPS on the IRS-assigned schedule. You can pay employees via direct deposit or check. Both options are included. Quarterly filings and year-end tax filing: Federated Tax prepares and files Form 941 each quarter, reconciles state payroll returns, and handles W-2 and 1099-NEC preparation by January 31. If a state notice arrives, Federated Tax responds directly.Businesses with back payroll taxes or missed 941 filings can have Federated Tax handle that before starting the ongoing payroll cycle. Getting current before the IRS moves first is always the better play.
What You Get
Why use an EA firm for payroll instead of a software app?
Software can automate payroll and hr functions when everything runs smoothly. But it can't respond to an IRS notice, sort out a wage garnishment, or register you in a new state when you hire a remote worker. Federated Tax acts as your payroll and HR support, combining payroll experts who know tax law with systems that keep compliance current. That combination matters the moment something goes sideways.
The penalty stakes are real. Under IRS Publication 15, a payroll tax deposit that's 1 to 5 days late costs 2% of the deposit. At 16 or more days late, that penalty jumps to 10%. And if the IRS determines payroll taxes were willfully unpaid, the Trust Fund Recovery Penalty kicks in, making owners and responsible parties personally liable for the employee portion. Federated Tax tracks every deposit deadline and files before it, so that situation doesn't come up.
Federated Tax also connects payroll entries to your books each period. That cuts the quarterly reconciliation time and keeps your financials accurate. No manual journal entries, no disconnected vendors, no coordination headache at year-end. Book online or call now.
What You Get
What do payroll services cost for a small company?
Federated Tax payroll costs start at $79 per month for businesses with up to 5 employees and $149 per month for 6 to 15 employees. Both tiers include unlimited payroll runs, all EFTPS deposits, quarterly 941 filings, and year-end W-2 and 1099-NEC preparation. No per-run fees added on top.
Affordable payroll services for a small business usually mean flat pricing, and that's what Federated Tax offers. Businesses with more than 15 employees get a custom quote based on headcount and how many states are involved. Multi-state payroll adds registration, withholding setup, and tax filing in each state, so that affects the price. Federated Tax is upfront about that before you sign anything.
If you already use Federated Tax for bookkeeping or tax prep, you can add payroll at a bundled rate. When the same payroll company handles your books and payroll, reconciliation is faster and there's no disconnect between what your payroll system reports and what your financials show. Call or book online today to get a quote based on your actual headcount and pay schedule.
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FAQ
Common questions about small company payroll services
Scope What does a full-service payroll plan include?
Full-service payroll through Federated Tax covers pay calculations, direct deposit, EFTPS tax deposits, quarterly 941 filings, state payroll returns, and year-end W-2 and 1099-NEC preparation. You don't manage any piece of the payroll process separately. Federated Tax handles the whole cycle for one flat monthly fee with no per-run charges.
Scope What is Form 941 and when is it due?
Form 941 is the quarterly IRS payroll tax return that reports wages paid and taxes withheld. Federated Tax files it four times a year: April 30, July 31, October 31, and January 31. Missing a 941 filing deadline triggers a separate penalty from the deposit penalty, so both deadlines matter.
Tax What happens if I miss a federal payroll tax deposit?
Under IRS Publication 15, a deposit that's 1 to 5 days late costs 2% of the amount due. At 16 or more days late, the penalty hits 10%. If the Trust Fund Recovery Penalty applies, the IRS holds responsible parties personally liable for unpaid taxes. Federated Tax tracks the EFTPS deposit schedule and files before every deadline.
Tax How does Federated Tax handle payroll tax compliance for FICA?
FICA totals 15.3%: 12.4% for Social Security and 2.9% for Medicare. Each payroll run, Federated Tax calculates the employee withholding portion and the employer match, then includes both in the EFTPS deposit. That payroll tax compliance step happens automatically with every pay cycle.
Tax Can Federated Tax help me process payroll for contractors and employees at the same time?
Yes. Federated Tax tracks W-2 employees and 1099-NEC contractors on the same plan. Contractors aren't subject to withholding, but Federated Tax tracks payments through the year and handles 1099-NEC filing for anyone paid $600 or more. Keeping that organized prevents IRS backup withholding notices.
Tax How long does it take to set up payroll with Federated Tax?
Most small businesses are ready to run payroll within 3 to 5 business days of the onboarding call. Federated Tax collects your EIN, state tax IDs, employee data, and prior payroll records during that first call, then handles all system setup and EFTPS enrollment so you don't have to.
Tax Does Federated Tax handle payroll and HR tasks together?
Federated Tax provides payroll and HR support that includes onboarding new hires, setting up direct deposit, managing tax registrations, and advising on worker classification. While Federated Tax isn't a full HR outsourcing firm, the HR services offered cover what most small businesses actually need alongside payroll.
Tax What if I'm behind on payroll filings from prior quarters?
Federated Tax handles catch-up 941 filings and can work toward penalty abatement with the IRS in cases involving first-time failures or reasonable cause. Getting current before IRS collections start is almost always less expensive. Call Federated Tax to go over your situation and figure out the fastest path to compliance.