What happens if a payroll tax deposit is late?

The IRS assesses a failure-to-deposit penalty starting at 2% of the unpaid amount for deposits one to five days late, increasing to 10% after sixteen days and 15% if the IRS has to issue a notice demanding payment. We track your specific deposit schedule and submit deposits ahead of the deadline to avoid this entirely.

Can you take over payroll mid-year from another provider?

Yes, we regularly transition payroll mid-year, and we reconcile year-to-date wages and tax deposits from your prior provider so W-2s at year end are accurate and complete. We handle the data transfer so there is no gap in employee pay.

How do you determine if a worker should be a 1099 contractor or a W-2 employee?

We apply the IRS behavioral, financial, and relationship control tests to how the work is actually performed, not just how the arrangement is titled. Getting this determination right up front avoids reclassification penalties and back payroll taxes later.

Do you handle multi-state payroll?

Yes, we register and file in each state where you have employees working, including states with reciprocity agreements or remote employees living out of state. Multi-state payroll requires tracking separate withholding and unemployment insurance rules for each jurisdiction, which we manage as part of ongoing service.

Accounting Services

Payroll Services

Techs paid correctly on commission, spiffs, and overtime, payroll taxes deposited before they're due, and 1099 versus W-2 calls made right the first time.

Built for HVAC, plumbing, electrical, and mechanical contractors running trucks, techs, and service agreements out of QuickBooks Online, ServiceTitan, and Housecall Pro.

Schedule Your Free Strategy Call (559) 203-3450

What sends contractors looking for this

We're worried a busy install season will make us miss a payroll tax deposit

Payroll tax deposits follow strict schedules, either monthly or semi-weekly, and the schedule can change as your crew grows during the summer AC rush. When an owner is running calls and hiring seasonal help at the same time, tracking which deposit schedule applies and confirming the money actually went out on time is easy to let slip.

Even a single late deposit, sometimes by just a day, triggers an IRS penalty notice, and most shops don't find out until that notice shows up weeks later.

The failure-to-deposit penalty starts at 2% for deposits one to five days late and climbs as high as 15% the longer it goes unpaid, with interest compounding daily on top, money that comes straight out of the season's profit.

We're not sure our install helpers should be 1099 or W-2

Whether an installer or helper is an employee or a 1099 contractor depends on how much control the shop has over their schedule, tools, and how the work gets done, not on what the worker prefers or what a competitor does. This is one of the most common mistakes we see in HVAC and plumbing shops that bring on extra hands during peak season.

Getting this wrong changes who owes payroll taxes, who is covered by workers' comp if someone gets hurt on a roof or in a crawlspace, and how much the worker owes personally at tax time.

A reclassification finding by the state or IRS can mean back payroll taxes, penalties, and interest going back several years for every worker misclassified, plus a workers' comp audit assessment if an injured helper turns out not to have been covered.

Paying techs on commission, spiffs, and overtime keeps producing mistakes

When a tech's check includes base pay, a commission on a sold install, a spiff for pushing a service agreement, and overtime from a weekend emergency call, calculating the correct overtime rate gets complicated fast. Missing that the commission and spiffs have to be folded into the regular rate before overtime is calculated is a common and costly error.

These mistakes repeat every pay period until someone catches them, so a small miscalculation in June is still wrong in September unless it gets fixed.

A tech who realizes his overtime was calculated wrong can file a wage claim that costs the owner back pay, penalties, and legal fees personally, and correcting months of wrong paychecks after the fact costs far more than getting the calculation right from the start.

How we fix each of those

01
Deposit tracking that doesn't slip during the summer rush
We determine whether your shop is on a monthly or semi-weekly deposit schedule based on your actual payroll liability, and we calculate and submit deposits in QuickBooks Payroll ahead of every deadline, checked every pay period regardless of how busy the season gets.
02
1099 versus W-2 review before you bring on seasonal help
Before you add install helpers for the busy season, we evaluate how each person is actually engaged against the IRS control test, so the classification is correct from day one and you are not exposed to a reclassification finding after the season ends.
03
Commission, spiff, and overtime payroll calculated correctly every run
We calculate the blended overtime rate whenever commission or spiffs are part of a tech's pay, run payroll on your schedule, and reconcile every run against your job cost records, so every paycheck is right the first time instead of getting corrected after the fact.

Everything included

Full-cycle payroll processing on weekly, biweekly, or semi-monthly schedules
Commission, spiff, and blended overtime rate calculations
Federal and state payroll tax deposit calculation and submission
Quarterly Form 941 and annual Form 940 preparation and filing
State unemployment and withholding tax filings
W-2 and 1099 preparation and filing at year end
New hire reporting for seasonal install and service helpers
1099 versus W-2 worker classification review
Direct deposit setup and management

Work that pairs with this

Bookkeeping

Every job cost, supply house charge, and membership payment categorized correctly and every account reconciled, every month, so your job profitability numbers are actually right.

View Bookkeeping

Financial Statement Preparation

Balance sheets and profit and loss statements that account for service agreements, warranty work, and truck loans correctly, ready for the bank when you need a new truck or a line of credit.

View Financial Statement Preparation

Account Reconciliation

Every ServiceTitan or Housecall Pro payout, supply house card, and van loan checked against the bank every month, so a bad deposit or a missing receipt gets caught while it's still small.

View Account Reconciliation

Contractors who have already done this

Real Google reviews from owners we work with, next to the engagements behind the numbers.

Google review
As a home services company, I feel that High Velocity Accounting has elevated our business to the next level. We are able to dig deeper into our numbers, report accurately and make adjustments where needed. They are very responsive, detail oriented and an extension of our team.
Cathleen Helin
Owner, Home Services
Clovis, CA
Case study
How a Construction Company Cleaned Up Two Years of Books and Financed New Equipment
Construction · $2.8M - $4.1M annual revenue
Books brought current
22 months
Equipment loan approved
$680,000
Read the full breakdown
Google review
I have been so genuinely pleased with High Velocity Accounting's services. I feel I have an extension of our team in Brett and his team. They always make time for my questions and look for strategic ways to build our businesses mutually. I rest easy knowing our books are kept in good order and our taxes are prepared professionally. I never hesitate to recommend this firm to any service business owners looking for professional book keeping and tax services.
Texas Medley
Owner, Service Contracting
Clovis, CA
Google review
We have been using High Velocity Accounting for a couple years now and are so thankful for their service! They are meticulous, thorough, dependable and always ready to deal with a curveball. Kind, patient, gracious. Thank you for your service and the relationship we've developed together.
Grant Schoenberger
Client, Trades
Clovis, CA
Google review
Brett Neal has been our family's accountant for over six years now, because he is the most dependable professional in this business. We started with Brett as two separate single-filers with simple W-2's and quickly graduated to a married couple having multiple types of complicated business/tax filings. Brett took every shift in stride; every transition has been carried out smoothly and without any hiccups. Trust that this is the guy for all your filing, bookkeeping, and financial consulting needs.
Alyssa Cotrina
Business Owner, Trades
Clovis, CA

Where we do this work

Our office is in Clovis and we work with home services contractors across the Central Valley and nationwide. Pick your city to see how payroll works for shops in that market.

Not on the list? We run every engagement over QuickBooks Online, ServiceTitan, and Housecall Pro, so distance does not change the work. Call (559) 203-3450.

Talk to a CPA who will actually pick up the phone

Start with a 30-minute consultation at no cost. You will leave it knowing what the work involves, what it costs, and what happens next.