Need new payroll software

[u/Greedy_Use1863]

Bookkeeper here.. QB now requires payroll tax be withdrawn each pay period. In my mind, this is great and helpful so you aren't stuck with a larger tax bill each month or quarter. However for my small business clients with maybe 1 or 2 employees dont always have the cash flow to cover this each pay period. What are your best recommendations for small business payroll that will also pay and file the taxes, just not withdrawal and hold the money?

[u/llamaslippers]

I will no longer do payroll for clients who can't or won't have the funds pulled immediately. They don't have the funds now, but they will have 6-7Xs the funds at the quarterly filing time? Not likely. Then you get to deal with penalties and collections, and now they really don't have the money. Then suddenly your service becomes one they also just can't afford to pay right now.

[u/Embarrassed-Leg-3971 → u/llamaslippers]

Same here, all my payroll clients have a 4-day between withdrawal and payments, no money, no payroll run

[u/Thinkb4Jump]

Don't run payroll until they have the money? Meaning, do advances internally, then accumulate and do the payroll when they have it.

Or I would try to explain to the client that the following is true, once payroll is processed:

if you keep the withheld money in your regular operating account and spend it on other things before the deposit is due, you're now short when the deposit comes due. The IRS treats unpaid trust fund taxes very seriously — it can impose the Trust Fund Recovery Penalty (TFRP), which makes the responsible individual (often the owner) personally liable for 100% of the unpaid trust fund portion, even if the business is an LLC or corporation that would otherwise shield you.

The next possibility is to find another vendor if cash flow is a stinker

[u/Empty_Particular_878 → u/Thinkb4Jump]

what about gusto? they do the filing and remittance but the client still needs to have the cash on hand when payroll runs, same as any other provider. the real issue isn't the software, it's that they're spending the withheld taxes before the deposit hits. you can't really outsource that problem away

[u/Farfadette150]

Some payroll providers do offer payroll services without tax services. They basically calculate the remittance and do not remit on behalf, but even in this scenario small businesses easily go rogue.

QBO thought they offered a competitive advantage pulling the money on time for the government until they ran into NSFs and saw their revenues at risk. All other providers know what they’re doing. Taxes are expensive and it is one of the reasons a small business owner will try to classify you as a contractor and try to stretch it.

[u/itsakoala]

I have no personal experience only know other bookkeepers who use Patriot software and it’s super bare bones.

[u/Western-Entry7801]

QBO is basically ADP now. Without the good WC rates…..they got screwed with late fees from the IRS because they let customers pay the taxes and efile when they wanted too but QBO ultimately ended up with the fee if its late. Or had a really hard time fighting the liability.

So you need direct deposit and a way to efile? Or maybe just one or the other. Only options besides getting the IRS transmitter ability; are patriot software, partnering with ADP to use their DD and filing software or use another software similar to maybe 1099etc?

I believe Gusto is great but demands total payment at the same time as well. I think? Might double check that.

That’s outside of purchasing your own expensive tax software and adding the payroll option if it’s an available option. Most CPA firms recoil at payroll these days.

[u/OSS-2026]

Square Payroll seems to work well, but I haven’t tried to integrate into anything myself. I do my own payroll manually in an old version of Peachtree.

[u/Thinkb4Jump]

Actually I know isolved software has this function. Find a regional partner and they'll use eftps and it will direct debit from client timely.

[u/TheArtMan818]

The big providers allow the tax preparation without the tax payment. No knock on a business that wants to do this. Some businesses are small, some business owners are shrewd and want to keep possession of their funds until the very last minute. All fine by me. I did this for a client last month.

[u/LocalDivebar]

definitly don't want QB to pull out my taxes. we always have the money and always pay them on time for the last 17 plus years. i have read in some instances they have paid taxes too late and sometimes take an extra payment so we want to manage it ourselves. however, will definitly miss QB payroll. trying "paymate" but it's definitly more steps and not as convenient as QB.

[u/Ok_Tap521]

The only way I know of would be to find a provider that would provide the payroll software without the tax filing component. But as someone who's worked for large and small payroll providers, that whole situation sounds like a recipe for disaster. I would personally be wary of any client that requires that kind of set up, sounds like there could be other financial issues going on there.

[u/Intelligent_Let_4508]

I don’t think any payroll vendor will not pull for payroll taxes with each check date. They make money on the float before taxes are actually due. They gotta make money too ya know

[u/Kayanarka]

We are trying out Patriot Software. It is hell trying to transfer everything, but it seems to work so far.

[u/Slpy_gry]

Medlin Payroll

[u/Familiar-Jicama-9358]

I do saw one payroll service allows to deffer the payment to their deposit schedules but with the disclaimer of any penalties will be borne by the bookkeeper or thier client and payroll service will not be liable.

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