In short

Payroll for professional practices typically involves salaried staff, owners who may pay themselves through payroll when the firm is an S corporation, bonuses tied to utilisation or collections, and a bench of freelancers who are not on payroll at all. The work is running salaries and bonuses accurately, documenting owner compensation decisions with the tax adviser, and keeping freelancers correctly classified and documented.

Professional firms usually have straightforward pay on the surface, mostly salaries, but there are details that matter: owners who are also employees, bonuses linked to performance, and a network of freelancers who must be kept off payroll correctly.

Salaries, bonuses and benefits

We run regular salary payroll, add bonuses when you approve them, and record benefits and deductions accurately. If bonuses are linked to utilisation, collections or client results, we can calculate them from the same reports we prepare for the firm's accounts.

Owners on payroll

When a firm is an S corporation, owners who work in the business typically receive wages through payroll as well as distributions. The IRS overview of S corporations explains how they are taxed. Setting owner pay is a tax decision, so we work with your adviser and then run it consistently.

Freelancers and the bench

Agencies and consultancies often rely on freelancers. Whether someone is a contractor or an employee depends on the relationship; the IRS explains the factors in its independent contractor guidance. We keep W-9s on file and payment totals ready for year-end forms, and flag cases where a freelancer looks more like a staff member.

Remote staff in other states

Many service firms hire remotely. An employee working from another state can bring withholding and registration obligations there. We track where each employee works, and our state guides point to official agencies.

Deposits and filings

Federal withholding and Social Security and Medicare taxes are deposited on a set schedule; the IRS explains depositing and reporting employment taxes. We reconcile deposits and quarterly returns to the payroll register.

What we look after

  • Salary and bonus pay runs
  • Owner payroll coordinated with your adviser
  • Freelancer classification and W-9 records
  • Remote employee location tracking
  • Employer tax deposits and returns

See our payroll services, our approach to professional services firms, or book a consultation.