Single Owner S-Corp - Employment Tax Questions

[David Gwilt]

My wife just recently formed a corporation in CA and elected S-Corp status with the IRS (via form 2553).  I spent time on the phone with the CA FTB and Employment Development Department, and am still struggling to find the right way forward with our complex circumstances.  I have hired a CPA firm, but was told the remaining questions I have are for Payroll processors or HR experts and not CPAs.

My wife is the sole-owner of the S-Corp, but will also be the sole employee (as she has to pay herself a reasonable salary prior to K-1 profit distribution).  She is also a military spouse, and we are both domiciled in FL so we are exempt from CA income taxes under Military Spouse Residency Relief Act (and as documented in CA FTB 1032).  Despite all of this, she will still be the sole employee of her S-Corp and we are finding out that even though she is exempt from CA withholding and CA taxes, unemployment insurance, and disability insurance, that she still has to create an account with CA and file quarterly and annual tax forms.  

We are in the process of determining all the forms that need to be filed at the CA and Federal level in order to "hire" herself as the sole employee of the company.  We have never hired a payroll company before, and are looking to see if there are any other Single Owner S-Corp owner/employees on BP that can provide us with some guidance and suggestions regarding payroll companies.