How am I supposed to do my payroll -please see the details below?

Question

Hi- I am the owner of a small business and I use Quickbooks. I started out freelancing and now I have so many projects that i have another consultant working with me. Our hours are billable on some projects and some projects are set rates.

How am I supposed tobe doing payroll? Are we supposed to get a certain percentage- say 45% of the project in as checks and the the rest goes into the business account? And do I remove expenses first- for example- If I found the project on a site that charges monthly access fees, do i remove those fees before processing payroll?

Answer 1

Payroll and payroll taxation are complicated matters, so your best bet is to stop worrying about it and sign up for a payroll service. There are several that come with QuickBooks. You probably want to use Assisted Payroll, since it minimizes time you spend on payroll-related issues.

As to how you are "supposed" to be "doing payroll", payroll is a business expense, just like rent or office supplies. You have an agreement with your employee, whereby you pay them either an hourly rate or a monthly salary. You also have agreements with clients, who either pay you hourly rates or fixed fees. There is no relationship between the two agreements whatsoever; the clients don't care how you pay your employees, and your employees don't care how clients pay you.

Answer 2

Where it me, I would pay employees off the top. You need to consider FICA and Benefits (if any) when bidding jobs.

I started a business providing sales services for smaller business locally. Since there was no overhead for the businesses, I found myself overwhelmed with contracts very fast. I restructured myself as an LLC, brought on an employee, and raised my rates to offset the added expenses.

This simply means I had to increase my value to the customer. This is a very easy thing to do when you use customer Imagination.

Answer 3

you il pay payroll taxes on all of your profits after expenses...for the most part. Your best bet is to find a good accountant.

Answer 4

if u want information about the payrolls just go through the following website