TRANSCRIPT:

Hi Greg Vojtanek here of Fade In Financial. For those creatives who have their own Loan-out Company, SCorps, LLCs, you’ve incorporated yourself; whatever you want to call it. Here’s a quick payroll tip.

Now first things first. I’m not a payroll or tax expert. You should definitely speak to one who is. But here’s what I have seen work for those creatives. Since you don’t necessarily know what you’re going to get paid year-to-year, or month-to-month, run payroll once per quarter. That’s it. So four times a year.

Here’s a quick example. The first quarter of the year, January, February, and March, let’s say you transferred money from your business account into your personal account in the amount of $20,000. Let’s say you did that in February. You don’t have to run payroll until the end of March for that first quarter.

You tell the government “my payroll for the quarter was $20,000.” The government comes back with here are the calculations; you owe us X amount of dollars in payroll and income taxes, based on that $20,000.

Then you pay the government that amount at the end of each quarter. That’s running payroll. That’s all you have to do. You don’t have to cut yourself a check, and you certainly don’t have to do it every week, or every-other week, or even every month. You can do it once per quarter.

Again, please speak with a professional, especially a tax professional and payroll expert. But this is what I have seen work, and this is what I see a lot of creatives do. Because your payroll and how much you pay yourself is going to vary from month-to-month and quarter-to-quarter. So that’s one way I’ve seen it work.

So I hope you have found this helpful. As always, do what’s right for you because you’re situation is different. Thank you for watching.