- Serving Taxpayers Since 1993
- File In Person or Fully Virtual
- Year-Round Help, Not Just Tax Season
- Nonprofit & Church Specialists
- Flexible Refund & Payment Options
Texas makes one part of payroll simpler: there is no state income tax to take out of anyone’s check. That does not make payroll easy. A Katy employer still withholds federal income tax, Social Security and Medicare, deposits it on the IRS schedule, files federal returns every quarter, and reports wages to the Texas Workforce Commission. We run payroll and handle those filings, so paychecks come out right and the IRS and TWC hear from you on time.
What Payroll Problems Do You Have?
Many owners first run payroll by hand. It works for a few pay periods. Then a federal deposit goes in late because payday fell in a busy week. Nobody checked whether you are a monthly or semiweekly depositor. A worker you paid as a contractor starts to look more like an employee. The quarterly TWC report sits undone because you did not know it is due even in a quarter with no wages.
People moving here from other states bring their own mix-ups. A new hire from California or New York may ask where the state tax went, or hand you a state withholding form you do not need. Owners who ran a business in another state sometimes keep taking out state tax out of habit. In Texas, the federal W-4 is the only withholding form. Getting that right on day one saves a year of corrected forms.
The first hire is its own problem. You need a federal employer number, a state unemployment account and a new-hire report, all within a few weeks of the first payday. Miss one and the letters start.
Our Payroll Services
It starts with paying your people. You pick a schedule that fits your business, such as weekly, biweekly or monthly. For each pay date we work out hours or salary, subtract federal income tax, Social Security, Medicare and things like health premiums, and hand back a net amount for each check with a stub that shows the math.
The money withheld from those checks is held in trust for the government, and it has to move fast. Payroll Tax Filing in Katy covers that part: electronic federal deposits, the quarterly Form 941, the yearly Form 940, and your Texas Workforce Commission wage reports with the unemployment tax that goes with them. After the last payday in December, W-2 & 1099 Preparation in Katy produces a W-2 for each employee and a 1099-NEC for each contractor who crossed the reporting line, then sends the government’s copies in by January 31.
New employers get help with setup. First comes the Employer Identification Number, which you can get free from the IRS online. Next is a Texas Workforce Commission account. Most employers become liable once they pay 1,500 dollars in wages in a calendar quarter or have someone on payroll in 20 different weeks of a year. The TWC says to register for an unemployment tax account within 10 days of becoming liable. Every new employee completes a federal W-4 for your files, and you report every new hire or rehire within 20 calendar days through the state’s new-hire reporting program.
Payroll for Katy Homes and Businesses
The Texas side of payroll is all about unemployment tax. The TWC taxes the first 9,000 dollars each employee earns in a year, at a rate set for your account. You pay it yourself. Nothing comes out of the worker’s check. Wage reports are due by the end of the month after each quarter, in April, July, October and January, and they are filed online. You file one even for a quarter with no wages. Wages a corporation or LLC pays its officers or members count for TWC, no matter how the IRS taxes the company. A sole owner’s draw does not.
Along the I-10 corridor through Katy and Brookshire, trucking and freight companies face a common choice: hire drivers as employees or pay owner-operators as contractors. The answer changes your payroll taxes, your TWC report and your year-end forms, so we talk it through before the first load goes out instead of after a notice shows up.
Households hire too. If you pay a nanny or caregiver in Cinco Ranch or Fulshear, you may owe federal household employment taxes once their wages pass a yearly limit. We can check whether that limit applies to you.
Why Choose Us for Payroll
We have been preparing tax returns since 1993, and payroll for small employers is a regular part of that work. Because one office can handle your books, your payroll and your business and personal returns, the wage totals agree everywhere they appear. Churches are welcome too. Pastor pay has a few special rules, and we handle them. Our Kingsland Boulevard office is open six days a week, twelve months a year, and everything can also be done online.
Every paycheck here is run by the Katy tax team behind this work, so payroll and tax filings come from one desk.
Our Payroll Services
Payroll Tax Filing
Electronic federal deposits, Form 941 every quarter and TWC wage reports, all on the right dates.
W-2 & 1099 Preparation
Each employee's W-2 and each contractor's 1099-NEC, out the door before the January 31 deadline.
Common Questions
Do I withhold Texas state tax from paychecks?
No. Texas has no state income tax, so there is nothing to withhold for the state. You still withhold federal income tax, Social Security and Medicare, and you pay Texas unemployment tax yourself.
Can I move my payroll to you in the middle of the year?
Yes. We need your year-to-date payroll totals, the 941s and TWC reports already filed this year, and your account numbers. Starting at the beginning of a quarter is simplest, but any month works.
Do I need payroll if I am the only person in my business?
It depends on how the business is set up. A sole owner of a plain LLC usually takes draws, not a paycheck. If your company is taxed as a corporation and you work in it, the IRS generally wants you on payroll at a fair wage.