Since I only have one employee, I can' afford to use payroll services like paychex and ADP. How do I go about paying the unemployment, payroll and s.s. taxes on my employee's behalf?
2007-02-19 08:40:54 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Yes, you will have to start paying payroll taxes.
Get a copy of IRS Pub 15, Circular E, Employer's Tax Guide. It will tell you everything you need to know -- and a lot you probably will wish you didn't have to know as well.
http://www.irs.gov/pub/irs-pdf/p15.pdf
Each state has their own procedures as well; contact your state's revenue department for guidance.
2007-02-19 08:47:16 · answer #1 · answered by Bostonian In MO 7 · 3⤊ 1⤋
Yes, you need to pay these taxes, and NO you do not want to do it yourself. Filings are numerous and confusing, and penalties for missing deadlines are very steep.
There are a number of online payroll services that are very easy to use and start at as little as $10 per pay period. In addition, if your business and your employee are Bank of America customers, they offer a free online payroll service.
Hire a payroll service, so you can spend your time building your business and not filling out forms.
2007-02-21 12:12:28 · answer #2 · answered by Big Larry 2 · 1⤊ 0⤋
Bostonian gives good advice for federal taxes. Don't forget that you are probably responsible for state taxes also. Even if your state doesn't have an income tax, there can be things like unemployment taxes.
2007-02-19 13:21:34 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
You will have to fill out and file a return with the infomation about all your employees. It will include their SS number and their total compenstation.
2007-02-19 08:47:22 · answer #4 · answered by Ovrtaxed 4 · 0⤊ 2⤋
An accountant can help you set up the basic paperwork, and then you can do it every quarter, month, year, etc.
2007-02-19 13:57:14 · answer #5 · answered by Quixotic 3 · 1⤊ 0⤋