Tips on payroll liability?

[justbeach03]

I have staff to pay for services they rendered (spa/salon), but not sure how much longer I can keep the creditors/landlord @ bay. How does this work when I file. Does the trustee shut down the business as of the filing date...or can we do a few more services to make payroll (comission based)? I hate filing and closing...but I would hate it even more if the 36 staff who put their trust in this business didn't get paid. Any insight?

[frogger]

What kind of business structure are you? LLC, Corp, SP......

[justbeach03]

I'm an S-corp and will have to file per ch7. obviously wont have a job after biz closes, but how do I pay people?

[frogger]

I have staff to pay for services they rendered (spa/salon), but not sure how much longer I can keep the creditors/landlord @ bay. How does this work when I file.

This can be a sticky issue. While we understand the need for everyone to be paid, everyone is NOT going to get paid, so therefore choices have to be made.

Does the trustee shut down the business as of the filing date

No. The trustee does not shut down the business as of the filing date. The trusted will more than likely insist that you dissolve the company when you have your 341 meeting, so you probably have a little time in there to adjust things.

...or can we do a few more services to make payroll (comission based)?

Keep in mind, while continuing to operate, any new debt that you incur will can not be discharged, so don't incur new debt.

I hate filing and closing...but I would hate it even more if the 36 staff who put their trust in this business didn't get paid. Any insight?

In my opinion, you need to make sure that your staff and your taxes are paid. Especially payroll taxes...... While I'm not going to suggest any plan of action, sometimes you just do what you've got to do to make it happen.

Good luck. Others will be along with more advice.