PAYROLL
Payroll, Taxes, and Paystubs — All Done for You
Lettuce runs payroll for solopreneurs, calculating your S Corp salary, withholding taxes, and generating the documentation you need at tax time.
THE LETTUCE ADVANTAGE
Payroll Built for How Solos Actually Work
Payroll That Runs Itself Every Month
Automated Payroll Runs
Lettuce calculates your salary, withholds taxes, processes payments through our payroll partner, and files returns on schedule — automatically, every month.
Compliant Pay Stubs and Filings
Get official pay stubs generated for you each pay period, along with payroll documentation.
Compliance-Standard Salary Calculation
Lettuce determines your "reasonable salary" using federal compliance standards, business income, and occupation data so you can maximize savings while staying compliant.
Federal, State & Local Coverage
From federal income tax to state payroll taxes, Lettuce automatically handles your federal and primary-state payroll tax and filing requirements.
THE REAL DIFFERENCE
What Counts as a Reasonable Salary?
Federal rules require S Corp owner-employees to pay themselves reasonable compensation for the work they actually perform, before taking any remaining profit as distributions. There is no official formula and no fixed percentage. Reasonableness is judged on factors like your role, hours worked, experience, and what comparable businesses pay for similar work. Salary carries the 15.3% payroll tax, distributions don't, which is why the split matters and why setting salary too low invites scrutiny.
Lettuce calculates a defensible salary from your actual profit and role, runs payroll on schedule, and keeps the documentation supporting the figure.
You may have seen a 60/40 rule online. It isn't an official rule, and it isn't a defense.
THE DETAILS
What You Get with Lettuce Payroll Automation
Federal Income Tax Withholding
Automatically calculated and withheld based on your tax situation, ensuring compliance and accuracy throughout the year.
Social Security Tax Withholding (6.2%)
Lettuce withholds 6.2% and pays the employer's 6.2% only on your salary, not distributions, saving thousands annually.
Medicare Tax Withholding (1.45%)
Both employee and employer portions are handled automatically. 1.45% each, withheld and paid on schedule.
State Income Tax Withholding
For states with income tax, Lettuce applies the correct rates and manages payments and filings for your primary operating state.
Automated Payroll Runs
From scheduling to salary payments, Lettuce handles payroll end-to-end with minimal manual input required.
Online Payroll Dashboard
Track pay history, view upcoming payrolls, and download pay stubs, all in one place.
Reasonable Compensation Calculation
Lettuce calculates your compliance-standard salary for S Corp status using income, industry, and region data to optimize tax efficiency.
HOW IT WORKS
How Lettuce Simplifies Payroll
Lettuce Calculates Your Salary
Your compliant "reasonable salary" is set based on your income and role.
Automatic Payroll Setup
Lettuce schedules payroll, calculates taxes, and processes payments automatically through our payroll partner.
Documentation Done
Paystubs, filings, and records are generated and stored for easy access.
Your Payroll, Backed by the Lettuce-Back Guarantee
Lettuce estimates your yearly tax savings based on your income and filing status. If you don't meet or beat those savings as an S-Corp, you'll receive a full refund. Lettuce also stands behind the accuracy of all work — if anything we've done is challenged, we'll defend it at no charge to you. Learn more.
Results from real businesses-of-one
Bhumieka Patel
SEO & Growth Strategist | Bhumi Strategy
"When I saw the tax savings potential of Lettuce setting me up as an S Corp, it felt like a real financial lifeline”
Susan Jones
Executive Coaching | Growing Edge Leadership
"As a consultant, Lettuce has let me rise to the occasion. I finally feel legit as a business owner.”
Blake Hunter
Real Estate Agent | Intero Real Estate
"Lettuce let's me focus on the sales and client side of my business without having to spend time on the financial side. Everything runs through Lettuce: Payroll, Tax withholding, 1099s to my vendors, etc.”
Payroll FAQs
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How does Lettuce calculate my reasonable salary?
Lettuce analyzes your business income, occupation data, and federal compliance benchmarks to determine a defensible "reasonable salary" that optimizes your tax efficiency while staying compliant.
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When does payroll run?
Payroll runs automatically each month. Lettuce handles the calculation, withholding, and payroll processing for you, so you don't have to manage it by hand.
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Are payroll taxes automatically filed and paid?
Yes — Lettuce automatically calculates, withholds, files, and remits all required federal and state payroll taxes on your behalf.
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Do I still need to make quarterly estimated tax payments?
In most supported setups, no. Lettuce pays taxes through payroll on an ongoing basis, so you generally don't need to manage separate quarterly estimated payments yourself.
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Will I get pay stubs for each payroll run?
Absolutely. Each payroll generates a detailed paystub showing gross pay, withholdings, and net pay, which is stored securely in your dashboard.
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What if my income changes from month to month?
Lettuce is built for uneven solo-business income. Your payroll adjusts around your actual business activity, and if you have a month with no income, Lettuce can still run payroll at a minimal amount to help maintain compliance.
Run Payroll Automatically. Stay Compliant Effortlessly.
Lettuce automates every part of your payroll process, from calculating your compliant salary to filing every federal and state payroll form. You get peace of mind, paystubs, and compliance, all in one place.
- Compliance-Standard
- Health Deductible
- Secure Payroll
- Lettuce-Back Guarantee



