How it runs for e-commerce brands and Amazon sellers
Contractor payments are tracked for 1099-NEC, and overseas contractors are documented separately. Multi-state registrations are flagged as remote hires arrive. Quarterly filings are reconciled to the ledger, and you approve every run.
What is payroll processing outsourcing?
Payroll processing outsourcing means a remote team prepares each pay run inside your payroll software: reconciling hours, entering changes, checking deductions and producing the run for the employer to approve. The employer keeps the payroll account, the bank authority and the legal responsibility. The provider posts the payroll journal and reconciles it, so payroll and the books agree.
What we handle for e-commerce brands and Amazon sellers
- Payroll inputs prepared for Gusto or ADP with journal posted by department
- Warehouse and fulfillment labor allocated to cost of fulfillment
- Seasonal hires and overtime tracked through peak periods
- US contractors tracked for 1099-NEC and overseas contractors documented
- Remote hires flagged for state registration before the first run
The KPI that matters here
Payroll journal posted within 1 business day of each run with fulfillment labor allocated to channel margin.
E-commerce compliance notes
Marketplace facilitator laws
Every US state with a sales tax now requires marketplaces such as Amazon, Walmart, eBay and Etsy to collect and remit sales tax on third-party sales. The marketplace's collections appear in your settlement reports and must be recorded as tax collected and remitted by the facilitator, not as your liability. Some states still require registered sellers to file returns that report marketplace sales as exempt.
Sales-tax nexus on direct sales
Direct sales through Shopify, your own site or wholesale count toward each state's economic nexus threshold, commonly $100,000 in sales or 200 transactions in the current or prior year, and inventory stored in FBA warehouses can create physical nexus. We track sales by state monthly, flag thresholds approaching and prepare the workings for TaxJar, Avalara or your filing provider. Registration and filing decisions rest with you and your tax adviser.
VAT, GST and cross-border selling
Selling into the UK requires VAT registration once taxable turnover passes £90,000, or from the first sale for many overseas sellers, and EU distance sales can be reported through the One Stop Shop. Canadian GST/HST and Australian GST apply to imported low-value goods and to registered sellers. We prepare VAT and GST workings for your accountant or registered agent to file; we do not submit returns.
Inventory valuation and 1099-K reporting
Inventory must be valued consistently, including freight, duties and prep, so COGS and taxable income are right. Payment processors and marketplaces issue Form 1099-K for gross payments, which is reconciled to recorded sales so the figures your CPA reports agree with what the IRS receives. Tax preparation is support only; your firm reviews and signs.
E-commerce software we work in
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Frequently asked questions
How do you handle a remote employee in a new state?
Before the first payroll run, the accountant flags the new state so your payroll provider can register for withholding and unemployment there. The employee is set up with the work state, and any local taxes are noted. The provider processes the run; our accountant prepares inputs and reconciles the filings each quarter.
Why allocate warehouse labor to fulfillment cost?
Because contribution margin by channel is only accurate when the labor to pick, pack and ship is counted alongside 3PL and marketplace fulfillment fees. Warehouse hours are allocated to channels by order volume, and the cost appears next to shipping and packaging. The founder can then compare in-house fulfillment with 3PL and FBA on the same basis.
How are overseas contractors recorded?
Overseas contractors are set up as vendors with their agreement, invoice and payment records, and paid through your chosen platform in their currency with the difference posted at the actual rate. They are excluded from US 1099-NEC reporting but documented for your CPA. Where a contractor is engaged through an employer-of-record, the provider's invoice is coded by department.
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