Payroll Services
Full-service payroll processing, tax deposits, W-2 and 1099 preparation, and quarterly compliance filings.
Payroll services for small businesses
in King George and Fredericksburg, VA.
Payroll is one of the most compliance-sensitive areas of small business accounting. Late or incorrect federal payroll tax deposits result in IRS penalties that begin immediately and compound. Book It Accounting provides complete payroll processing for small businesses so employees are paid correctly and tax obligations are met on schedule — every period, without exception.
Lisa Hamlin manages payroll for businesses ranging from single-employee operations to multi-employee teams, handling all payroll frequencies — weekly, biweekly, semi-monthly, and monthly — along with all federal and state tax deposits, quarterly compliance returns, and year-end filings. Payroll services King George VA business owners use through Book It Accounting are fully outsourced — you provide the hours, Lisa handles the rest.
Federal payroll tax obligations
Every employer is required to withhold federal income tax, Social Security tax (6.2% of wages up to the annual wage base), and Medicare tax (1.45% of all wages) from each employee paycheck. These withheld amounts, combined with the employer’s matching share, must be deposited with the IRS on a schedule determined by the size of your payroll liability — either monthly or semi-weekly.
The IRS Failure to Deposit penalty ranges from 2% for deposits 1–5 days late to 15% for amounts still unpaid more than 10 days after the first IRS notice. These penalties apply to the full deposit amount. Consistent, on-time deposits are a legal obligation with real financial consequences for non-compliance.
every deadline met.
IRS payroll penalties are automatic. There is no grace period for a late deposit and no appeal process for a missed deadline. Lisa manages payroll for businesses from single-employee operations to multi-employee teams — handling federal deposits, state withholding, quarterly 941 filings, and year-end W-2 and 1099 preparation. The obligation is met correctly because it is handled by someone who does this every pay period, not once a year at tax time.
Quarterly and annual compliance
Employers must file Form 941 — the Employer’s Quarterly Federal Tax Return — four times per year. Form 940, the Annual Federal Unemployment Tax return (FUTA), is filed once per year. Virginia employers also file quarterly with the your state Employment Commission for state unemployment insurance.
At year-end, every employee receives a Form W-2 and every independent contractor paid $600 or more receives a Form 1099-NEC. Misclassifying an employee as a contractor is one of the most common and costly payroll mistakes a small business can make. The distinction between employees and contractors is determined by IRS common law rules, not by what you call the working relationship.
Virginia payroll requirements
Virginia employers must register for a state employer withholding account with the Virginia Department of Taxation before the first payroll. Most states also require new hire reporting within 20 days of a new employee’s start date. State unemployment insurance is administered by the your state Employment Commission and paid quarterly based on taxable wages. All of these obligations are managed as part of the payroll engagement.
Payroll and bookkeeping
Payroll and bookkeeping work best when managed together. Payroll entries — gross wages, withholdings, employer tax expense, net pay — must be recorded correctly in your books each period. Book It Accounting coordinates monthly bookkeeping and payroll so that labor costs flow correctly into your financial statements each month.
How payroll processing works
The payroll engagement begins with collection of existing payroll records — current employee information, year-to-date payroll history, and copies of most recent federal and state filings. This ensures year-to-date figures are carried forward accurately. A payroll schedule is established based on your pay frequency and deposit schedule, and the first payroll is processed from there.
Each pay period, you submit hours or salary confirmation, and Lisa processes the payroll, calculates all withholdings, and initiates the deposit. Direct deposit is set up for employees where applicable. Each quarter, the Form 941 and state returns are prepared and filed. At year-end, W-2s and 1099s are prepared, distributed to recipients, and filed with the IRS and Social Security Administration by the applicable deadlines.
Payroll services in King George and Fredericksburg, Virginia
Book It Accounting provides payroll services for small businesses throughout King George, Fredericksburg, Stafford, Spotsylvania, and nationwide. Virginia has its own employer withholding and unemployment insurance requirements that apply in addition to federal payroll obligations. These state-specific requirements are managed as part of the full-service engagement — not as add-ons.
For businesses with both employees and independent contractors, Book It Accounting manages both payroll and contractor payment tracking, ensuring year-end W-2 and 1099 preparation is accurate and on time. Payroll services are available as a standalone engagement or coordinated with monthly bookkeeping — the combination ensures payroll entries are recorded correctly in the financial statements each month without manual reconciliation between two separate systems.
Book It Accounting accepts payroll clients on an ongoing retainer basis. There is no minimum employee count. Single-employee businesses — where the owner is often the only W-2 employee — are a common payroll client profile. For businesses that pay a reasonable salary to an S-Corporation owner and treat the remainder as a distribution, proper payroll processing is essential to maintaining that structure compliantly. The payroll engagement handles the mechanics so the tax strategy works as intended.
Answers before
you even ask.
The IRS assesses a Failure to Deposit penalty ranging from 2% to 15% of the unpaid amount depending on how late the deposit is. These penalties apply immediately and accumulate — which is why timely deposits are non-negotiable.
Yes. Book It Accounting processes both employee payroll and contractor payments, and prepares the required W-2s and 1099-NEC forms at year-end for each.
Yes. Most transitions require a prior-year payroll report and your most recent 941, 940, and state filings to ensure year-to-date figures are carried forward accurately.
Employee wages require withholding and employer tax matching. Contractor payments do not require withholding, but a 1099-NEC must be issued at year-end for payments of $600 or more. Misclassifying employees as contractors is an IRS audit trigger with serious penalties.
Other ways
we can help.
Ready to get your
books in order?
Schedule a free consultation. Lisa will review your situation and give you an honest assessment — no pressure, no obligation.