Need help setting up employee with works comp and taxes legally

[googles]

Need help setting up employee with works comp and taxes legally. For example if an employee makes 6hr for 30 hours a week for a total of $180 a week. How do you figure out how much taxes come out of that and what taxes do I deduct from his salary? Do I have to worry about federal, social, and any other if any? What would $180 a week be after taxes? And what forms I do I have to fill out. I believe all I have to do is W4 form and works comp form but not sure. If it helps I’m from NY long island in Suffolk county. Please help! I am lost…..

[DiscoveryLawn]

googles, Have you considered using a payroll service? They are relatively inexpensive and is worth the time you save not to mention the piece of mind. We use our accountant now but have used the payroll company in the past.

[googles]

i wanted to learn and do it myself but how much was the payroll service and what does your account charge to do it.

[Flipperneck]

Have you gone to the states website? or the irs website? I found alot of info on Jerseys tax info there.

[googles]

yea i checked out the websites but still lost thats why im looking for better understanding. its only my second year in business so i am having a hard time going legit. i went coporate this year and all that is fine but i may want to hire someone this year.

[Flipperneck]

I wouldn't be afraid to pick up the phone and call around till you get the right people more specific answers then you would probably get on here. There's 2 things i don't mess around with 1 is taxes and the other is fat peoples food. Good Luck...

[James Cormier]

Originally posted by googles
yea i checked out the websites but still lost thats why im looking for better understanding. its only my second year in business so i am having a hard time going legit. i went coporate this year and all that is fine but i may want to hire someone this year.

You went coporate??? that means you incorporated your business right? What type of corporation are you? C,S or LLC

If I m not mistaken if your any of these you would be doing this for yourself right?

My advise is to hire a accountant and a payroll service.
Your current insurance agent will set up your workmen's comp insurance program.

Payroll services are cheap,

[mtnlawn]

The whole tax thing can definitely be a big ordeal if you don't do it right.The websites are out there,but they can be misleading or uninformative-Contact an accontant- they should be able to at least setyou upand get you rolling- this is money well spent!!!

[jajwrigh]

Contact a lawyer and/or an accountant! Don't use guesswork when it comes to taxes and employees!

[googles]

one last question, what about subcontract ing someone. this way i dont have to worry about taxes and workers comp. i dont have many clients so paying lawyer and account will cost more then i make lol. would subcontracting a worker be a good way to go? thanks for all your input

[lawnman_scott]

Call the irs and request publication 15-T. And contact your state and county office for any local taxes. the rate for medicare tax is 1.45% or .0145xwages. And the rate for Social Security tax is 6.2% or .062x wages. You have to match ss and medicare taxes. There are tables for federal income tax. It all depends on his marital status and #of dependents claimed. You have to send in the taxes to the irs 4 times a year. Send in federal, ss, and medicare. And have to match ss and medicare. Do it for about a month and you will see that a monkey could do it. Dont waste your money paying someone.

[DJL]

My brother and I have an LLC. Our first year was last year, no employees so we don't have the issue of WC. This year we figured we needed a helper for the spring/fall clean-ups. Well, contacted the insurance agent to see about WC. Bottom line, my insurance carrier has a minimum amount for WC and it is over $8k. We would be paying more in WC then we would be paying the part-time employee!

[1acreplus]

Originally posted by googles
one last question, what about subcontract ing someone. this way i dont have to worry about taxes and workers comp. i dont have many clients so paying lawyer and account will cost more then i make lol. would subcontracting a worker be a good way to go? thanks for all your input

This can be a dangerous situation. You have to make sure your subcontractor is insured, and you should (at a minimum) get a notarized letter of indemnity from them. Talk to your insurance agent about the possibility of having a subcontractor - he/she will tell you what to watch out for.

[gene gls]

googles:

Workers comp is based on payroll, employee or subs. A "sub-contractor" is some one you hire to do work you are not equipped to do. If that sub contractor is an independent business with out employees then most likly he will not have W/C, there fore he will fall under your insurance. I have to require a "certificate of ins record" for all the subs I use and submit the record to my insurance company for my record file. You need to talk with a CPA and a good insurance agent to under stand where the fine lines are drawn before you end up with big problems.

Gene

[IndyPropertyCare]

Subcontractor..... A business you engage to provide services your company has "contracted". The subcontractor must provide all labor and tools necessary to complete any contracted work. The subcontractor must provide there own insurance, pay all taxes. The contractor can not provide any part of the labor / tools / etc. to complete the work.