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I'm an employer. Where do I deduct my expenses paid to a Payroll company like ADP?

I'm a small business owner (sole proprietorship).  I have 3 employees.  I use ADP to process and handle my payroll.  ADP charges me about $80 per payroll processed, which adds up to about $2,000 for the year.


I'm filling out my Schedule C in TurboTax and there's a bunch of different categories for business deductions, but I don't know what category to place payroll processor expenses in.  Where should I list this expense?

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2 Replies
CathiM
New Member

I'm an employer. Where do I deduct my expenses paid to a Payroll company like ADP?

You can add your own description, like "payroll processing fees" and put in the amount under Other Miscellaneous Expenses.  It will show up on Part V of Schedule C and the total of all Other expenses will go on Line 27a. 

TurboTax calls it "Other Miscellaneous Expense" on the screen "Let's write off some business expenses" and it is the last category on the list.  It allows you enter your own categories and amounts. See screen shot.

Here are the steps:

  1. Under Business tab at the top scroll down to Business Expenses and click on Visit All
  2. Click Done to bypass the Vehicle expenses if you have them
  3. On the screen "Let's write off some business expenses" , scroll to the bottom to  Other Miscellaneous Expenses.
  4. Click on Start or Update and this will allow you to make your own categories
Anonymous
Not applicable

I'm an employer. Where do I deduct my expenses paid to a Payroll company like ADP?

Looks like you need to make a switch.  Square (same company used for credit card processing) is much cheaper.  If you haven't done so already, shop around.  I pay $54/mo for 4 employees on payroll.  Total.

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