#80: Modern Payroll 101

In this episode of the Teaching Tax Flow podcast, we welcome Will Lopez of Gusto to unearth the critical significance of payroll beyond its traditional perception. The conversation dives deep into the transformative power of modern payroll services provided by Gusto, as well as how efficient payroll processing can be leveraged for strategic tax planning and business growth. Explore how shifting from an arduous, compliance-heavy task to a streamlined, culture-centric system can make all the difference.

This podcast episode delves into the importance of choosing a payroll solution that offers more than just transactional processing, with Will highlighting the culture and community aspects they weave into their payroll services. Will Lopez sheds light on income shifting as a tax planning technique and how proper classification of employees and contractors can save businesses from trouble. Furthermore, the discussion touches upon leveraging payroll to offer employee benefits, enhance retention, and position oneself as an appealing employer in today's competitive job market.

Key Takeaways:

• Payroll is more than just a financial transaction; it's an opportunity to reflect and build company culture and employee well-being.
• Proper classification of workers as either employees or contractors is critical for legal compliance and tax benefits.
• Income shifting and tax strategies like S corporations can save businesses significant money, with payroll processing playing an integral role.
• A modern and comprehensive payroll system like Gusto provides additional value through benefits, HR, and effective onboarding processes.
• Implementing strategic payroll processing through a cloud-based system can safeguard against compliance issues and facilitate growth.

Notable Quotes:

• "Payroll really is a reflection of society, in my opinion." - Will Lopez
• "The economy flows through payroll. Communities are actually upheld through payroll." - Will Lopez
• "The only thing that's really happened with payroll, it's gone from like rock hammer chisel to desktop to the cloud." - Will Lopez
• "Running a business, you wanna save money, but if you're running a team as well, you wanna give yourself or make yourself look good as an employer, especially if you're growing a team." - Will Lopez
• "Compensation is only a small piece of somebody's consideration of staying at your company." - Will Lopez

Resources:

• Check it out for yourself >> www.teachingtaxflow.com/payroll

Episode Sponsor:
The Mortgage Shop