S-Corps

Payroll services for S-Corp owners

You elected S-corporation status to run a smarter business. That means paying yourself a reasonable salary on a consistent schedule, running payroll for your team, and filing quarterly payroll taxes on time.

SurePayroll® By Paychex processes payroll, completes direct deposit, and calculates, deposits, and files your federal, state, and local payroll taxes.

It also offers built-in 401(k), health insurance, and workers’ comp integrations, plus accountant-ready reports and mobile access.

Payroll software designed for S-corp owner-employees who run their own operation.

Get Started

A solopreneur discusses contract details with two clients.

S-corp payroll built for the way you operate

Payroll, tax calculation, filing, and payment

SurePayroll calculates your federal, state, and local payroll taxes each pay period, deposits them to the appropriate agencies, and files quarterly returns, including Form 941.

Accountant access and reporting

Share payroll reports and year-end Form W-2s with your accountant or CPA directly from your account. Exportable data keeps your records current.

Employee-owner and team payroll

Active S-corp owner-employees pay themselves a W-2 salary before taking distributions. SurePayroll processes payroll for both the owner and any employees, with direct deposit to all accounts.

S-Corps

What S-corp payroll requires

S-corp payroll runs differently than standard small business payroll. The structure requires active owner-employee salary payments on a consistent schedule, quarterly payroll tax filings, and clear separation of salary from owner distributions. These are not optional steps. They are part of running your business the right way.

Here’s what running S-corp payroll involves:

Mandatory pay schedule

Active S-corp owner-employees must run payroll on a consistent schedule: weekly, biweekly, or monthly. The IRS requires it as part of reasonable salary compliance.

Salary before distributions

Salary comes before distributions. S-corp owner-employees pay themselves a reasonable salary first and pay payroll taxes on those wages.

Quarterly filing deadlines

Quarterly payroll tax filings are due four times a year, including Form 941. Meeting each deadline keeps your S-corp in good standing.

Determining reasonable salary

The IRS does not define reasonable salary for you. Active S-corp owner-employees determine appropriate compensation based on industry, role, and comparable wages.

Adding W-2 employees or independent contractors

Adding team members means setting up payroll for W-2 employees or payments for independent contractors.

Our Solution

How S-corp owners run payroll with SurePayroll

SurePayroll runs payroll on your schedule, calculates and deposits your payroll taxes, and files quarterly returns including Form 941. Set up W-2 employees and independent contractor payments in the same account. Just click. Run. Done.

Here’s what you get with SurePayroll

Payroll should be stress-free. So we make sure it is.

See all features

OUR CLIENTS SAY

“As a single-member S-corp, I needed a simple and affordable payroll solution that I could manage…I'm very happy with my SurePayroll services…401k integration was a breeze, too.”

Brian K.

SurePayroll Customer

“SurePayroll helped me set up payroll for my S-corp. [My rep] was very prompt, patient, courteous, and professional…she walked me through processing my first payroll payment and setting up automatic payroll. Looking forward to taking this off of my plate as a single parent and business owner who wears too many hats.”

Jennifer H.

SurePayroll Customer

“I like knowing we can count on SurePayroll to take care of our payroll details. It means we can concentrate on our business, not payroll.”

Dave

SurePayroll Customer

25+

YEARS

Trusted by small business owners across the U.S.

Payroll for as little as $1 per day

Billed monthly. Cancel anytime.

Create your account in 30 seconds

You can get started right now! Just answer a few quick questions to get the ball rolling.

Set up your business (we can help!)

Add your company, employee, bank, and tax information. (Need help? Onboarding support is always free.)

Free payroll every other month in your first year

During your first 12 months with SurePayroll, every alternating month will be free. And since there’s no commitment, you can cancel anytime.

Get started

Frequently asked questions

How does S-corp payroll service work?

Active S-corp owner-employees set a reasonable salary, run payroll on a consistent schedule, and pay payroll taxes on those wages. As a payroll provider, SurePayroll processes S-corp owner-employee payroll the same way it processes employee payroll, wages and payroll taxes calculated and deposited on your schedule.

What is the payroll tax advantage (“loophole”) for S-corps?

S-corp owner-employees pay payroll taxes on their salary only, not on owner distributions. By setting a reasonable compensation and taking additional income as distributions, you may reduce overall payroll tax exposure.

SurePayroll runs payroll and files your payroll tax returns. Consult your CPA for guidance specific to your situation.

Does an S-corp need to pay the owner a salary?

Yes, if you’re active in the business, IRS rules require you to pay yourself a salary before taking distributions.

What payroll taxes and forms does SurePayroll file for S-corp owners?

SurePayroll calculates federal, state, and local payroll taxes each pay run, deposits them to the appropriate agencies on your schedule, and files quarterly returns including Form 941.

Form 1120-S and Schedule K-1 are annual corporate tax filings, which stay with you or your CPA.

What’s the difference between an S-corp owner’s salary and distributions?

S-corp owner-employees pay themselves a reasonable W-2 salary, which is subject to payroll taxes including Social Security and Medicare taxes.

Distributions are taken separately and are not subject to payroll taxes.

The IRS requires the salary to be reasonable given the owner’s role in the business.

SurePayroll runs payroll and payroll tax filings on the salary. Distribution amounts are a business accounting decision, typically made with your CPA.

Related Resources

View all Resources

Your S-corp runs on you. Your payroll runs on SurePayroll.

S-corp payroll runs on requirements, not guesswork. SurePayroll calculates, deposits, and files each pay run on your schedule.

Get started now

Payroll services for S-Corp owners

S-corp payroll built for the way you operate

What S-corp payroll requires

Here’s what running S-corp payroll involves:

Here’s what you get with SurePayroll

Unlimited, fast payroll runs

Free direct deposit & automatic payroll scheduling

Reports and paystubs online 24/7

Payroll taxes filed and deposited—automatically

Payroll for as little as $1 per day

Create your account in 30 seconds

Set up your business (we can help!)

Free payroll every other month in your first year

Frequently asked questions

Related Resources

Your S-corp runs on you. Your payroll runs on SurePayroll.

Payroll services for S-Corp owners

S-corp payroll built for the way you operate

What S-corp payroll requires

Here’s what running S-corp payroll involves:

Here’s what you get with SurePayroll

Unlimited, fast payroll runs

Free direct deposit & automatic payroll scheduling

Reports and paystubs online 24/7

Payroll taxes filed and deposited—automatically

Payroll for as little as $1 per day

Start now for limited-time offer.*

Create your account in 30 seconds

Set up your business (we can help!)

Free payroll every other month in your first year

Frequently asked questions

Related Resources

Your S-corp runs on you. Your payroll runs on SurePayroll.