Payroll as IC

[livingkennedy]

I have been looking into the payroll process, and it seems most ICs use a payroll service. I can't for the life of me find out how that works - the payroll websites give generic information. What I want to know is: Do you get a check directly from the hospital that you then deposit in a payroll service account, then pay from there? Can you have the hospital just send the check to your payroll service? How does the money actually change hands from hospital to business to payroll service to employee?

[NedRN]

You need to learn a lot more before payroll. If you are an independent contractor, you own your own business. You contract with a hospital for services, and invoice them the hours worked. They pay your invoices, not your payroll. Payroll is up to you, the business owner.

The payroll company has nothing to do with your client. All they do is take money you give them, deduct the proper taxes and do the associated filings. The usual way this works is they debit your business bank account after you tell them when and how much to pay you. They can give you a check, or direct deposit the money into your personal bank account.

[livingkennedy]

Thanks Ned. I didn't know if there were ways to get the money forwarded to the payroll service. Kinda like direct depositing from business to payroll service.

On a somewhat different but related note: When you invoice a hospital - how often do you do this and how much time do you give them to pay? I understand many hospitals pay out quarterly, so I would assume you wont be getting anything if you invoice at the beginning of the quarter and give 30 days, so the hospital would not agree to those billing terms. Is this true about the quarterly payments? How do you do it?

[NedRN]

Standard business terms are 30 days. Never heard of quarterly billing, ever.