3 Ways Paychex Solo Benefits Self-Employed Business Owners

Self-employed business owners have so much on their plates. They’re focusing on growing their own small business, a significant investment of time and energy, and succeed. Simultaneously, these self-employed solopreneurs are working out the next steps necessary to plan for the future. That planning process means finding ways to minimize taxes now while saving for their future retirement.

The good — actually, great! — news is that self-employed business owners don’t need to do all this planning alone. Retirement, payroll solutions, and much more can be found in the Paychex Solo package. This solution was made with the self-employed solopreneur in mind. Let’s take a look at how its core offerings can help grow your business right now.

Solo 401(k) plan for retirement.

What is a Solo 401(k) plan? This retirement plan powered by Paychex that allows self-employed solopreneurs to put significant amounts of money away towards retirement now.

Previously, self-employed business owners had SEP IRA as one of their few retirement options. A Solo 401(k) provides even more retirement savings power. Self-employed individuals may make contributions as an employee and employer, plus reap these additional benefits with the Solo 401(k).

High contribution limits. Self-employed business owners over the age of 50, for example, have high contribution limits of $56,000. Moreover, there’s an additional six grand catch-up contribution.
Greater flexibility. Choose from more than 9,500 investments with low-cost options included.
Tax savings. Reduce tax liability through writing off retirement contributions and S Corporation savings.

Need extra guidance? There’s a Paychex Solo 401(k) specialist available to offer support and assist with administering and using the retirement plan.

Payroll services.

Many self-employed business owners need a bit of help with maintaining their payroll. As their business continues to grow, however, it’s key that their payroll never misses a payment beat. Your payroll needs to be handled by professionals. Paychex Solo offers integrated payroll services, along with the Solo 401(k) plan. Let’s take a look at how these payroll services work to your benefit.

Establish weekly, monthly, quarterly, or annual frequency options.
Choose flexible payment options, like direct deposit.
Count on accurate and timely recordkeeping, payment, and filing from Paychex’s tax payment service.

Once you form an S Corporation and start paying yourself a consistent, reasonable W-2 wage, you may realize significant tax savings. Make the most of these savings with Paychex’s payroll services.

Startup and incorporation services.

This is one of our favorite sections of Paychex Solo to highlight because this is our specialty. We partnered with Paychex to assist your startup with key business filing services.

Many self-employed business owners initially incorporate as a sole proprietor. However, they may choose to switch to a different entity. Many pick a limited liability company in order to receive liability protection, credibility, and tax savings for their small business. It’s a savvy move for self-employed solopreneurs. This is especially true as laws gradually change for hiring independent contractors.

Likewise, when you invest in Paychex Solo, you’ll receive your choice of two additional filings through MyCorporation. Check out the filing options we offer below. Decide which combination of federal and state services your self-employed business needs.

Corporate formations. For example, do you want to incorporate as an LLC or corporation? We’re here to help with the process. Moreover, we’ll assist in electing S Corporation status to save on FICA taxes.
Federal tax ID. Ready to hire employees? You’ll need to obtain an employer identification number (EIN). Let us assist you so that you may hire employee, open a business bank account, and make appropriate tax payments.
State IDs. We’re here to help you obtain a state unemployment ID, state insurance tax, withholding ID, local tax ID, and much more depending on the needs of the state you incorporated in.
Business licenses. Do you need a doing business as name (DBA)? How about a city business license? In addition, we’ll work with the appropriate agency to obtain the necessary business licenses for your startup.

Ready for Paychex Solo?

This solution, containing the Solo 401(k) plan, payroll, and business filing services, helps self-employed business owners simplify their startup’s needs — now and well into the future. Moreover, we’ll handle the paperwork so you can get back to doing business. Get started today with Paychex Solo!

Deborah Sweeney

Deborah Sweeney is an advocate for protecting personal and business assets for business owners and entrepreneurs. With extensive experience in the field of corporate and intellectual property law, Deborah provides insightful commentary on the benefits of incorporation and trademark registration.

Education: Deborah received her Juris Doctor and Master of Business Administration degrees from Pepperdine University, and has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in corporate and intellectual property law.

Experience: After becoming a partner at LA-based law firm, Michel & Robinson, she became an in-house attorney for MyCorporation, formerly a division in Intuit. She took the company private in 2009 and after 10 years of entrepreneurship sold the company to Deluxe Corporation. Deborah is also well-recognized for her written work online as a contributing writer with some of the top business and entrepreneurial blogging sites including Forbes, Business Insider, SCORE, and Fox Business, among others.

Fun facts/Other pursuits: Originally from Southern California, Deborah enjoys spending time with her husband and two sons, Benjamin and Christopher, and practicing Pilates. Deborah believes in the importance of family and credits the entrepreneurial business model for giving her the flexibility to enjoy both a career and motherhood. Deborah, and MyCorporation, have previously been honored by the San Fernando Valley Business Journal’s List of the Valley’s Largest Women-Owned Businesses in 2012. MyCorporation received the Stevie Award for Best Women-Owned Business in 2011.

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View Comments

James says:

4 years ago at 2:24 PM

Love this post Debbie! There's an option for self-employed health benefits too we just recently got them it's called Mira (www.talktomira.com), really affordable copays for preventative and urgent care. I tried to find plans on the exchange but it was no hope.

https://www.talktomira.com/post/the-ultimate-guide-to-self-employed-and-freelancer-health-insurance-in-nyc