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  #11  
Old 11-01-2002, 01:43 PM
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JimLewis JimLewis is online now
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Quote:
is there any way to not do a payroll and still get a legal tax deduction
No, there really isn't. Don't even think of hiring them as sub--contractors. We've been over that one several times here. Do a search to find out more about why that's a really bad idea.

Other than hiring temporary labor there's no way around doing payroll.

Furthermore, if you think temporary workers are expensive, then I think you are grossly underestimating the cost of doing it yourself. Because it will cost you at least as much as the temporary place charges per hour to do it yourself.

For instance, a local temporary agency might charge $13 per hour and pay the employee $8 per hour. And you might think it'd just be cheaper to hire your own employee and pay him $8 an hour. Well, I am telling you, that is far from true (unless you do something illegal). Once you add in workers' comp., taxes, Accounting fees, etc. it will easily be $13 per hour to have that employee work for you.
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  #12  
Old 11-01-2002, 02:01 PM
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AztlanLC AztlanLC is offline
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Well I use my accountant besides quickbooks because she makes sure all the reports are done correctly and the $500.00 that I paid her las year included everything form payroll, stimate taxes and end year tax report.
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  #13  
Old 11-09-2002, 02:47 AM
dr grass dr grass is offline
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i forgot what the original post was about!!! lol i dont know about paying taxes on an employee because i dont have any!! next year ill have some though pry make my job easier!!! lol


shep :blob4:
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  #14  
Old 11-09-2002, 03:30 PM
Nebraska Nebraska is offline
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Quote:
is there any way to not do a payroll and still get a legal tax deduction

Employee Leasing aka Professional Employer Organizations. Check out www.napeo.org.
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  #15  
Old 11-09-2002, 03:43 PM
Nebraska Nebraska is offline
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Jim

Quote:
For instance, a local temporary agency might charge $13 per hour and pay the employee $8 per hour. And you might think it'd just be cheaper to hire your own employee and pay him $8 an hour. Well, I am telling you, that is far from true (unless you do something illegal). Once you add in workers' comp., taxes, Accounting fees, etc. it will easily be $13 per hour to have that employee work for you.
Your employee payroll expenses are 61.5%?

Here is what a typical employer is going to face in regard to payroll taxes:
Fica: 6.2%
Futa: .8%
Medicare: 1.45%

For a total of 8.45% or $8.45 for every $100 of payroll.

Add to it:

State Unemployment: Here in Nebraska our companies state unemployment is 3.5% of the first $7000 of each employees payroll.

Worker's Compensation: Our compensation rate is $4.23 for every $100 of payroll....

In this scenerio our total worst case percentage (before limits met) would be 16.18% or $16.18 per $100 of payroll.

So you take the $8.00 per hour employee and that employee is actually costing you with taxes, comp etc a total of $9.29 per hour. That is nowhere near $13 per hour. Basically that Temp Service is making at least $3.71 per hour off the employee.

All of this is much cheaper than a temporary service and it is all legal. You can't tell me that the cost of doing payroll is going to cost you in excess of $7000 per employee (2000hr)per year.
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  #16  
Old 11-09-2002, 03:45 PM
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bubble boy bubble boy is offline
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payroll really isn't that bad, at least not in Canada. government sends a mini program on diskette, just plug the # and deductions all worked out.

i of course know squat about the US, but for canadians reading this it's pretty easy, and quick even for four or five employees.

any more people than that a payroll company is good money.
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  #17  
Old 11-09-2002, 03:46 PM
Nebraska Nebraska is offline
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Quickbooks basic payroll is $99 per year. The program is under $300.
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  #18  
Old 11-09-2002, 06:40 PM
Kent Lawns Kent Lawns is offline
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Location: Midwest
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Payroll is like driving a car:

Overwhelming at first (for some)

In time, no big deal.

Just follow the rules and you'll be fine.

Do it wrong and you'll get killed.



Really not much different than payroll.
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  #19  
Old 11-10-2002, 09:34 AM
Harvestman Harvestman is offline
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We use a service called Paychex. It costs $60 a month and they take care of everything but W.C. And we do that ourselves. For the $60 they file all the proper quarterlys. The best $60 you will spend.
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  #20  
Old 11-13-2002, 08:22 PM
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lasher66 lasher66 is offline
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I know some guys that dont take no taxes out of their employees pay. The employee is responsible for holding their own taxes. Is this legal? What are the advantages/disadvantages. Thanks

Lasher
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