Startup payroll
Startup Payroll Services
Gusto, Rippling, or Deel setup; multi-state registration; equity-comp payroll; and the R&D payroll-tax credit — handled end to end.
What you get
Payroll built for startup speed
Founder + team payroll
On-cycle wages, employer taxes, benefits deductions, and clean accruals.
Multi-state & remote
State registrations, SUI rates, and workers' comp wherever your team lives.
Worker classification
Employee vs. 1099 evaluation so you don't get a state misclassification notice.
Equity & R&D credit
ISO/NSO exercises, 83(b) timing, and the R&D payroll-tax offset on Form 8974.
Scope
What's in a startup payroll engagement
- Gusto, Rippling, or Deel implementation and migration
- Founder payroll setup and reasonable-comp modeling (S-corp / C-corp)
- State payroll tax registration in every employee state
- Workers' comp policy setup or pay-as-you-go integration
- 1099 contractor onboarding and year-end 1099-NEC filing
- Equity grant tracking with Carta or Pulley integration
- R&D payroll-tax credit claimed on Form 8974 (up to $500K/year)
- Benefits administration: health, 401(k), commuter, HSA
- Quarterly 941, annual 940, W-2 / W-3 filings
- Off-boarding, final pay, and state-specific termination rules
FAQ
Startup payroll questions
Which payroll provider is best for a startup?+
Gusto is the default for sub-50-employee US-only teams. Rippling makes sense once you add HR, IT, or international. Deel wins when your team is mostly international contractors or EOR.
When do founders need to be on payroll?+
C-corp founders should be on payroll once the company has revenue or institutional funding. S-corp owner-employees must take reasonable comp before distributions. Payroll is also required to claim the R&D payroll-tax credit.
Can a startup CPA help with the R&D payroll-tax credit?+
Yes. Qualifying startups offset up to $500K/year of employer payroll tax with the federal R&D credit, claimed on Form 6765 and applied via Form 8974 each quarter.
Do I need to register payroll in every employee's state?+
Yes. Each state where you have an employee requires state withholding registration, SUI registration, and often workers' comp coverage. Skipping this triggers notices and penalties.
Should developers be 1099 or W-2?+
Most full-time developers should be W-2. Long-term, full-time, controlled work is the IRS and state test for employee status — misclassification is one of the most common startup audit triggers.
How do equity grants get into payroll?+
ISO exercises usually don't hit payroll; NSO exercises do (ordinary income + employment taxes). RSUs at vesting flow through payroll. Carta or Pulley feeds the events into Gusto / Rippling.
Vetting checklist
Questions to ask a startup CPA
- 1How many venture-backed or high-growth startups do you currently work with?
- 2Do you handle R&D credit, §174 capitalization, and Delaware franchise tax in-house?
- 3What's your monthly close timeline, and what does the deliverable pack include?
- 4Can you support a future audit, 409A valuation, and equity comp accounting?
- 5How is pricing structured as we grow from pre-seed to Series A?
Featured Professionals
Featured startup CPAs and firms
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By city
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Houston, TX
Houston CPAs serve energy, healthcare, and the city's vast small-business community.
Dallas, TX
Dallas accounting firms anchor finance, real estate, and corporate headquarters across DFW.
Los Angeles, CA
LA's accountants specialize in entertainment, real estate, and creative-industry tax planning.
San Francisco, CA
San Francisco CPAs serve startups, venture-backed companies, and complex equity-comp clients.
New York City, NY
NYC's accountants cover Wall Street, media, real estate, hospitality, and the small businesses of all five boroughs.
Miami, FL
Miami's CPAs specialize in international tax, real estate, hospitality, and Latin American business.
Chicago, IL
Chicago accountants serve professional services, manufacturing, logistics, and the Midwest's largest corporate base.
Atlanta, GA
Atlanta's CPAs support film, fintech, logistics, and one of the country's most dynamic small-business scenes.
Boston, MA
Boston-area accountants serve life sciences, higher education, financial services, and innovation-economy startups.
Seattle, WA
Seattle CPAs serve tech, aerospace, and the Pacific Northwest's deep entrepreneurial bench.
Washington DC, DC
Washington DC accountants serve federal contractors, nonprofits, associations, and the law firms that anchor the capital's economy.
Baltimore, MD
Baltimore CPAs serve healthcare systems, port and logistics operators, biotech, and the city's deep nonprofit and higher-ed community.
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