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Setting up company /w employees?

Discussion in 'Business & Tax Advice' started by infinite22, Feb 19, 2009.

  1. infinite22

    infinite22 Registered Member

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    So I am getting to the point where I am looking to outsource my work. I want to setup a company and hire some employees from my local area. So I am looking for information on how exactly I am going to setup things, specifically payroll (how do i deal with taxes my employees and my own)...

    I am not sure how I go about paying people like do I take taxes out of thier checks if so how much and what do I do with this money i took out.
     
  2. innocent

    innocent Junior Member

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    Wow, before hiring my own employees I would probably consider just outsourcing to independent contractors. However, to answer your question, your best bet is to hire a payroll service and they will handle everything from withholding taxes, paying those taxes to the government (both State and Federal), and also file the required quarterly documents with this Feds. Let me make this one thing very clear THIS IS NOT SOMETHING YOU WANT TO DO BY YOURSELF. The whole payroll process is a pain in the ass. Don't try to pinch pennies and do it yourself. If you truly are in a position to take on new employees than spend the small monthly amount to have a payroll service handle that crap.

    I have a single person S-Corp and have a payroll service do my monthly paycheck. For $45.00 per month they handle all of the details I mentioned above. If you have less than 5 employees you will pay less than $100.00 and they will do it all!! Just look online or in the yellow pages for a "payroll service" in your area.

    HOpe that answers your question. Feel free to post if you have more questions as I have a ton of experience in this area.
     
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  3. bizcredit

    bizcredit Power Member

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    Trust me on this. Talk to an accounting firm in your area. The best is a local one that has a nice office. They usually charge X amount for every payroll I think. Or you hire them as contract workers and just pay them, let them deal with taxes.
     
  4. mdmoney

    mdmoney Junior Member

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    If you do a c-corp you can still pay yourself for doing work and that has tax advantages. If you hire contractors you can keep away from having to do all that tax stuff and the people you hire have to do this instead. You still will have to do the ss and med taxes

    With our new administration I believe there will be more laws that will hinder small companies like having to provide medical insurance and other types of insurances with a small amount of employees.

    Contractors are the way to go if you can do it.
     
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  5. graphicnut

    graphicnut Supreme Member

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    dont do payroll just put it on business expenses and get them to send an invoice for work :)
     
  6. rjj4181

    rjj4181 Newbie

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    Believe it or not, a great starting point is irs.gov
    There is a new section that deals speifically with business start-ups
     
  7. cathy

    cathy Junior Member

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    I would highly recommend either taking courses or hiring a bookkeeper to do the payroll for you. Their is so much involved in payroll and if one of your quarterly's are missed the state and IRS charges fines that continue to grow with interest.

    I agree with hiring a payroll company, or a bookkeeper to do this for you. Payroll companies are the best as you will be relieved of all the headaches.
     
  8. detox1978

    detox1978 Junior Member

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    Talk to your bank, they'll have a full time business advisors trained to show you what to do. If they are no good talk to a different bank. You will most probably want to setup a business bank account - so all banks will be keen to chat with you.

    Oh, and find a good accountant, they are well worth the extra money.