1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Need some payroll advice

Discussion in 'Business & Tax Advice' started by mofaux, May 5, 2010.

  1. mofaux

    mofaux Regular Member

    Joined:
    Apr 15, 2010
    Messages:
    276
    Likes Received:
    293
    Occupation:
    I work for the man.
    Location:
    DC
    While scoping out competition links for a local SEO client, I noticed a lot of his competition using paid directories, most of them not even local. There is a thread on this site about soliciting memberships to your own paid directory. I thought it might be worthwhile to take it a step further.

    I'm considering starting a local business directory and hiring a prominent club promoter as my sales manager. He would get a cut of the commission for the people working under him. I would get what's left over after all commissions are paid out.

    The only problem I have with this is that I've never done any kind of payroll, and I have no experience with payrolls paying solely commission. The tax research I can do, but can you guys suggest any tools/methods for making the payroll process as automatic as possible? Or dealing with payroll in general? Also, if you think my idea is good or bad for any reason, I'd love to hear that too. Thanks in advance, I look forward to reading your responses.
     
  2. mofaux

    mofaux Regular Member

    Joined:
    Apr 15, 2010
    Messages:
    276
    Likes Received:
    293
    Occupation:
    I work for the man.
    Location:
    DC
    Hopefully that is what I'll end up doing. If I can advise my to be sales manager on how to do it himself for an extra cut of the commission, that would be preferable and likely cheaper than going through another party.
     
  3. cathy

    cathy Junior Member

    Joined:
    Sep 15, 2008
    Messages:
    146
    Likes Received:
    16
    It may be cheaper in the beginning, however if you don't complete all the state and federal reports that are required quarterly and yearly you will be fined additional money. If you lack the complete funds to pay all the taxes on payroll you will incur additional fines + interest on amounts owed. If it is a reporting error that caused a lower amount to be paid, you will still be fined and charged interest on the amount owed.

    Basically in the long run you would be better getting some professional help in starting the payroll. Use what they do to teach yourself how to do it and maybe in the future you can save money and bring it back in house. BTW.. I know of a company with two stores that went under due to payroll taxes!! Quickbooks can help immensely with payroll taxes and many portions of the reporting needs.


    Another option is look into independent contractor rules and see if you can make this person an independent contractor. You will have to look into this as I don't know what the person you are hiring will be doing. Basically if you have to direct them they are an employee and their is no way around that.