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4 seasons lawn&land
10-23-2010, 04:20 PM
Im wondering what I have to set up as far as tax stuff goes. The ins. part is as easy as a phone call to add someone on the policy but I have no idea on the government tax bull ****.

gasracer
10-23-2010, 05:59 PM
Use contract labor.....Less hassle to deal with..

nepatsfan
10-23-2010, 06:24 PM
Im wondering what I have to set up as far as tax stuff goes. The ins. part is as easy as a phone call to add someone on the policy but I have no idea on the government tax bull ****.

Call a company that does payroll like paychex or something. That is who I use but you can probably use anyone. They literally do everything including taking the tax money out and paying the government. I even have my workers comp through them. They just take out exactly the right amount every week for the amount of hours that they worked. It only costs me about 35 bucks a week to have them do it. This includes the checks too. Every week they call me, ask me how many hours my guys have and the checks are there in a day or two.

mr.q
10-24-2010, 08:00 AM
Use contract labor.....Less hassle to deal with..

Be careful with contract labor. Yes it is good in some cases but you have to make sure that they are using there own equipment and insurance.

lawnman_scott
10-24-2010, 08:24 AM
Call a company that does payroll like paychex or something. That is who I use but you can probably use anyone. They literally do everything including taking the tax money out and paying the government. I even have my workers comp through them. They just take out exactly the right amount every week for the amount of hours that they worked. It only costs me about 35 bucks a week to have them do it. This includes the checks too. Every week they call me, ask me how many hours my guys have and the checks are there in a day or two.

An interesting fact on companies like paychex, did you know that they are so reasonably priced because they make most of their money on intrest? The intrest they make on your money from the time you pay until the chescks are cashed, with the amount of customers they have is alot of money.

If you decide to do it yourself you can start with pub 15 from the IRS, and you will need to find out what to do about state taxes as well if you have state income tax. That will be handeled through your state dept of revenue or something to that effect. If you are good with paperwork and the book keeping end it isn't that hard to do, but like was mentioned, the payroll companies are reasonably priced.

Cajun Cleanin'
10-24-2010, 08:54 AM
Drive into Home depots parking lot and hold your hand ou the window with two fingers in the air.They jump into the back of the truck and they are hired.LOL








Just kidding

nepatsfan
10-24-2010, 11:10 AM
An interesting fact on companies like paychex, did you know that they are so reasonably priced because they make most of their money on intrest? The intrest they make on your money from the time you pay until the chescks are cashed, with the amount of customers they have is alot of money.

If you decide to do it yourself you can start with pub 15 from the IRS, and you will need to find out what to do about state taxes as well if you have state income tax. That will be handeled through your state dept of revenue or something to that effect. If you are good with paperwork and the book keeping end it isn't that hard to do, but like was mentioned, the payroll companies are reasonably priced.
I am sure they do. I am happy to give them the interest off the money to not have to deal with it. If you are only employing a few employees the interest really isn't going to amount to that much and you don't have to worry about the paperwork being correct and making sure you set aside enough money to pay the government every quarter. Paying them with the interest is a heck of a lot cheaper than to employ a secretary to do it for me. I don't have to worry about paying the government every quarter either.
I am sure it isn't very difficult to do but for 140 bucks a month it's well worth it for me. If I only had 1 employee I would still do it.

Working Man
11-01-2010, 09:40 PM
I went through this a couple years ago. Had a friend that did taxes talk me into letting him handle all the paperwork. Long story short it was a nightmare. Cost about $1500 in penalties which I got back after many hours on the phone and many letters to all different govt agencies. On the bright side I can do it all myself now and save my $140 a month. I did get an excel spreadsheet that has all the calculations for taking the taxes out. If you want to do it yourself you need to have an employee identification number and an unemployment number.
1. Contact the state and ask them for their publications and forms needed
(Michigan requires one form to be filled out monthly stating amounts withheld from employees checks and then send a check to them.)

2. Call the IRS
A) You need your employees to fill out Federal W2's to tell you how much to withhold from their checks, (you file) State W2's, (Mail out so the state can take all of their money for child support) and I9's (mail out to social security office) to make sure they're legal residents.
B) You need to enroll in EFTPS (Electronic Funds Transfer Payment System.)
C) We make a payment to our payroll taxes every pay period but generally it's supposed to be monthly if you withhold more than $2500 in a quarter.)
D) Quarterly you have to file a worksheet balancing what you've paid in to make sure the amounts balance. Usually is a PITA but not unbearable.
E) You have to send out W3's to all of your employees by Jan 20th I believe

3. Contact your unemployment office
A) Ask them what forms you need to fill out (michigan's is two forms quarterly)
B) In Michigan we pay 2.9% on all wages under $9,000 so once an employee makes over 9k you don't have to pay on them anymore. When I was talking to the IRS they said that we're the only state that doesn't have a credit though so we're probably higher than you.

I know it sounds like a lot and it is a little time consuming at first but it only takes me about 20 minutes to do payroll now and 2-3 hours every quarter to do the federal and unemployment and I save $140 a month. You may spend some time on hold but the people at all of these government agencies are helpful and they will stay on the phone with you as long as you need to understand things. Hope that helps

nepatsfan
11-03-2010, 07:03 AM
I went through this a couple years ago. Had a friend that did taxes talk me into letting him handle all the paperwork. Long story short it was a nightmare. Cost about $1500 in penalties which I got back after many hours on the phone and many letters to all different govt agencies. On the bright side I can do it all myself now and save my $140 a month. I did get an excel spreadsheet that has all the calculations for taking the taxes out. If you want to do it yourself you need to have an employee identification number and an unemployment number.
1. Contact the state and ask them for their publications and forms needed
(Michigan requires one form to be filled out monthly stating amounts withheld from employees checks and then send a check to them.)

2. Call the IRS
A) You need your employees to fill out Federal W2's to tell you how much to withhold from their checks, (you file) State W2's, (Mail out so the state can take all of their money for child support) and I9's (mail out to social security office) to make sure they're legal residents.
B) You need to enroll in EFTPS (Electronic Funds Transfer Payment System.)
C) We make a payment to our payroll taxes every pay period but generally it's supposed to be monthly if you withhold more than $2500 in a quarter.)
D) Quarterly you have to file a worksheet balancing what you've paid in to make sure the amounts balance. Usually is a PITA but not unbearable.
E) You have to send out W3's to all of your employees by Jan 20th I believe

3. Contact your unemployment office
A) Ask them what forms you need to fill out (michigan's is two forms quarterly)
B) In Michigan we pay 2.9% on all wages under $9,000 so once an employee makes over 9k you don't have to pay on them anymore. When I was talking to the IRS they said that we're the only state that doesn't have a credit though so we're probably higher than you.

I know it sounds like a lot and it is a little time consuming at first but it only takes me about 20 minutes to do payroll now and 2-3 hours every quarter to do the federal and unemployment and I save $140 a month. You may spend some time on hold but the people at all of these government agencies are helpful and they will stay on the phone with you as long as you need to understand things. Hope that helps

Or save countless hours and headaches dealing with this stuff and let someone else do it for next to nothing

fl-landscapes
11-03-2010, 08:00 AM
buy quick books