Security Company Bookkeeping, Payroll and Tax Services

California law defines a security guard as an employee of the licensed private patrol operator, and the state's ABC test applies broadly. Misclassification can bring back payroll taxes, EDD and IRS assessments, and civil penalties of $5,000 to $25,000 per violation. Outside California, the IRS control test still applies. Classification is reviewed and corrected before an audit does it for you.

Overtime, double time, meal and rest period premiums, split shifts, multiple posts and holiday rates are processed correctly every cycle. Quarterly Form 941 and California DE 9 and DE 9C filings are reconciled to payroll so the numbers match.

Workers' comp premiums are based on payroll by class code and are audited after the policy year. Clean payroll records by class keep the audit from turning into a surprise bill.

Bill rates are compared with the real cost of each post: wages, overtime, payroll taxes, workers' comp, uniforms, vehicles and supervision. Some contracts look profitable until every cost is counted.

Payroll goes out weekly or biweekly while clients pay on 30 to 60-day terms. Receivables are tracked and cash is forecast, so growth doesn't create a payroll squeeze.

Entity structure, S-Corp salary, licensing, guard card and permit fees, vehicles and equipment are set up for the best tax result, with federal and California returns prepared alongside the books.