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I operate my childcare business on a fairly strict budget and utilize Execupay, a professional payroll service, to pay my employee.
I was reading that, as a sole proprietor, I can't add myself to payroll. But I am wondering if anyone knows what the difference (from a tax perspective) between estimating my income, taking draws, and paying quarterlys and just paying myself a salary on the payroll system. (Based on the same estimated income)
And if I paid myself on the payroll system, are there any negative tax consequences? (As long as I don't do anything shady, like try to deduct my own income)
TIA
I was reading that, as a sole proprietor, I can't add myself to payroll. But I am wondering if anyone knows what the difference (from a tax perspective) between estimating my income, taking draws, and paying quarterlys and just paying myself a salary on the payroll system. (Based on the same estimated income)
And if I paid myself on the payroll system, are there any negative tax consequences? (As long as I don't do anything shady, like try to deduct my own income)
TIA