Payroll Services

    Payroll Services

    Payroll mistakes lead to IRS penalties, employee frustration, and compliance headaches. Our full-service payroll handles everything from processing runs and tax filings to W-2 and 1099 preparation. We support multi-state payroll, direct deposit, and new hire reporting and track every filing deadline with you.

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    Free initial consultation · No obligation

    • Best for small teams, including employees in several states
    • Licensed CPA firm
    • Fees quoted upfront, in writing

    Who runs payroll and payroll tax filings for small businesses?

    Your Virtual CPA is a licensed CPA firm that runs payroll, files federal and state payroll taxes, and prepares W-2s and 1099s for small businesses and nonprofits, including teams spread across several states. Every payroll run gets a two-person review. Request a free consultation to set up or switch.

    What's Included

    Weekly, bi-weekly, semi-monthly, or monthly payroll runs
    Federal payroll tax calculations and filings (941, 940)
    State payroll tax filings in every state where you have employees
    Local tax withholding and filing where applicable
    Direct deposit processing
    W-2 preparation and distribution
    1099-NEC preparation for contractors
    New hire reporting to state agencies
    Workers compensation audit support
    Paid time off and leave tracking
    Year-end payroll reconciliation
    Employee self-service portal access

    Who This Is For

    Small Businesses with Employees

    You have one to fifty employees and need reliable payroll processing that calculates withholdings correctly, files taxes on time, and handles direct deposits without errors.

    Multi-State Employers

    You have remote employees or locations in multiple states and need payroll that handles varying state income tax rules, unemployment rates, and local tax requirements.

    Businesses Using Contractors

    You work with 1099 contractors and need proper classification guidance, payment tracking, and year-end 1099-NEC preparation to stay compliant with IRS rules.

    Companies Switching Payroll Providers

    You are frustrated with your current payroll provider and want a CPA-managed service where payroll, bookkeeping, and tax all work together under one roof.

    Our Process

    1

    Payroll Setup & Configuration

    We collect employee information, set up tax accounts with federal and state agencies, configure pay schedules, and establish direct deposit. For companies switching providers, we handle the full migration including mid-year tax balances.

    2

    Recurring Payroll Processing

    Before each pay date, you approve hours or salary changes and we process the run. Employees receive direct deposits on schedule, and all tax withholdings are calculated automatically based on current rates and employee W-4 elections.

    3

    Tax Filing & Compliance

    We file federal Forms 941 and 940, state withholding returns, and state unemployment reports on your behalf each quarter. We also handle state new hire reporting and any local tax filings required by your jurisdictions.

    4

    Year-End Reporting

    At year-end, we reconcile all payroll data, prepare and distribute W-2s to employees and 1099-NECs to contractors, and file annual returns. We coordinate with our tax team to ensure payroll data flows cleanly into your business return.

    Why Choose Your Virtual CPA

    CPA-managed payroll, not a generic software platform with a help desk
    Seamless integration with our bookkeeping and tax preparation services
    Multi-state payroll for remote and distributed teams
    Tax calculations checked and filings tracked against every deadline
    A dedicated payroll specialist who knows your business by name
    Two-person review of every payroll run before it is processed

    Frequently Asked Questions

    Payroll fees are quoted upfront after a short call. The fee depends on pay frequency, number of states, and whether you need additional services like time tracking integration or workers comp reporting. We provide a fixed monthly quote so there are no surprises on your invoice.

    Yes. We process payroll and file employer tax returns in the states where your employees live and work, including DC, Virginia and Maryland. For remote teams, we ensure each employee has the correct state and local withholdings based on their work location, handle reciprocity agreements between states where applicable, and file employer returns in every jurisdiction where you have a filing obligation.

    We track all contractor payments throughout the year and prepare Form 1099-NEC for any contractor paid $600 or more in a calendar year. We also help you evaluate whether workers are properly classified as contractors versus employees, since misclassification can result in significant IRS penalties, back taxes, and state labor law violations.

    If we make an error in payroll processing or a tax filing, we correct it promptly at no additional charge and work with you on any notice that results. Every payroll run goes through a two-person review before processing.

    Related Services

    Bookkeeping & Accounting

    Payroll entries flow directly into your books. Bundle payroll with bookkeeping for fully integrated financial management.

    Tax Preparation & Planning

    Coordinated payroll and tax services ensure your S-Corp compensation, deductions, and filings are fully aligned.

    Startup Accounting

    Launching a new business? We set up payroll, bookkeeping, and entity structure together from day one.

    Serving clients nationwide

    Virtual CPA services for clients anywhere in the U.S. Local tax guides:

    Washington DCMarylandVirginia

    Ready to talk it through?

    Schedule a short call to discuss your payroll services needs.

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