Hi everyone. I am part owner of a construction business and we desperately need to start a payroll, as we have hired help recently. I really don't want to pay taxes on someone else's money. Any input would be much appreciated, as tax time for us is coming up. Thanx.
2007-03-09 12:05:38 · 3 answers · asked by Alisha J 1 in Business & Finance ➔ Small Business
Is there anyway that I could possibly handle all of the payroll details by myself? We only have a few guys working for us. Do you know what the legalities of this situation are?
2007-03-09 12:17:28 · update #1
There are many options for your payroll. You could go to a large place like ADP, but they may be too expensive for a small outfit. Some banks offer payroll services, too, and some accounting software like Quickbooks offer payroll options. You will probably also find many small payroll processing companys in most medium to large cities.
Any way you go, you will be paying employer portions of the payroll taxes. Whether it's directly or by being billed through the processor, there is no way around it when you have employees.
You can definitely handle it by yourself. I have used QuickBooks with payroll when I was doing independent accounting and payroll work, so I know it is easy to use and is a good program. Feel free to email me if you want some more information. If you do, I will want to make sure I give you all the steps you need to get started.
2007-03-09 12:13:20 · answer #1 · answered by Brian G 6 · 0⤊ 0⤋
Be VERY careful before accepting any advice to treat your self described "employees" as "independent contractors" unless you enjoy IRS audits. There are very explicit rules and guidelines in place to prevent people from doing just that. The IRS knows employers want to avoid paying Employer FUTA and FICA (about 8.45% of gross wages) and believe me they look for it. If it were that easy, we'd all be IC's.
I'd strongly encourage you to visit the site listed below and review the sections titled "The First Employee" and "Worker Classes" before doing anything else.
2007-03-12 18:39:03 · answer #2 · answered by Dennis D 2 · 0⤊ 0⤋
You will have to hire all your staff as independent contractors and pay only workman's comp insurance. Granted you will have to pay an inflated hourly rate to make up for lack of benefits and to account for taxes that would have been taken out.
At the end of the year issue 1099s to all.
2007-03-09 20:18:05 · answer #3 · answered by csucdartgirl 7 · 0⤊ 1⤋