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Old 04-04-2004, 02:57 PM
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ELANDSCRAPER ELANDSCRAPER is offline
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Employee Taxes

I WOULD LIKE TO GET SOME INFO ON TAXES. I'VE ALWAYS PAID UNDER THE TABLE BUT HAVE GROWN,AND HAVE TWO EMPLOYEES I NEED TO PUT ON THE BOOKS. I HAVE ALL THE SOFTWARE TO DO PAYROLL BUT WHAT PERCENT OF TAXES DO I WITHHOLD, AND WHAT PERCENT DO I CONTRIBUTE.PLEASE HELP
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Old 04-04-2004, 03:14 PM
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houston houston is offline
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Employee taxes

My suggestion is to get yourself a payroll service to handle all of your payroll and the quarterly paperwork. The price you pay for them is well worth it.
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Old 04-04-2004, 05:53 PM
lawnman_scott lawnman_scott is offline
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go to the irs website and order publication 15. You have to match social security, and med tax,and withhold federal.
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  #4  
Old 04-04-2004, 07:25 PM
charlies charlies is offline
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quickbooks does it almost automatically. you have to subscribe to their payroll service to get the latest tax table info. also, federal unemployment and state unemployment rates are based on experience. after you get your federal tax i.d. #, (form ss-4, you can download it from irs website). call the irs and ask them how you find your experience rate for fed unempl. i think they automatically mail it to you after they get your ss-4, but i could be wrong about that, ask them. then you need to contact your state comptroller, find out your state unempl. experience rate.

you use the state and fed experience rates to help you figure out the percentage to withhold from paychecks for these two items. if you are using quickbooks, you just type this info in when your setting up your company and it does the rest for you.

after you have w-4 and whatever state form employees fill out to indicate their exemptions and witholdings, you use this information and the tax tables from the federal and state government to figure out what to withold for income tax. again, if you are using quickbooks, you just enter the info when you are setting the employee up in the system and it takes care of the rest for you.

you will probably have to fill out forms 940 and 941 monthly to remit witheld federal income tax and unemployment to the feds.
quarterly, you will probably need to fill out a summary form of taxes and unemployment witheld to the feds. also fill out form and remit witheld state income tax and unemployment. quickbooks automatically does alot of this for you.

as mentioned, you not only have to withold social security and medicare from employee paychecks at a rate determined by the government, but you also have to match those funds with your own money. in other words, if you withold a total of $200 in social security and medicare from your two employees in a month (ballpark numbers) you have to remit that 200 and 200 of the companies money to the feds.

finally, at the end of the year, you have to file forms that summarize the years activities to all these agencies.

don't forget, once you have a federal i.d. that sooner than later IWIF will get their greedy little hands on your info. they will want to see payroll summary forms you file with the feds and you will have to start paying them ridiculous premiums for workman's comp insurance. it's madatory. also eventually the government is going to want to start taxing your businesses property once you have your federal id.
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Old 04-04-2004, 10:31 PM
missytheaccountant missytheaccountant is offline
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Again these taxes very from state to state. Here is a sample of how it would work in Alabama...from the gross pay you deduct your 7.65% FICA (SS and Medicare), federal withholdings (which you get from a Circular A or E), and state withholdings (which you get from a state schedule). Your matching portion is on FICA and you also have to pay federal and state unemployment taxes. Federal unemployment is .8% on the first 7,000 and here in Alabama, state unemployement is based on your experience rating and paid on the first 8,000 in wages.
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Old 05-27-2004, 07:41 AM
boonhogganbeck boonhogganbeck is offline
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Missy, were are you in Alabama? I'm from Birmingham, currently exiled in Atlanta . I do try to make it back for football games, though (Bama grad).
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  #7  
Old 05-30-2004, 08:13 PM
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tiedeman tiedeman is offline
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Re: Employee Taxes

Quote:
Originally posted by ELANDSCRAPER
I WOULD LIKE TO GET SOME INFO ON TAXES. I'VE ALWAYS PAID UNDER THE TABLE BUT HAVE GROWN,AND HAVE TWO EMPLOYEES I NEED TO PUT ON THE BOOKS. I HAVE ALL THE SOFTWARE TO DO PAYROLL BUT WHAT PERCENT OF TAXES DO I WITHHOLD, AND WHAT PERCENT DO I CONTRIBUTE.PLEASE HELP
if you have the software then it should be able to handle everything for you. Usually you have to pay a monthly fee or yearly fee (like I do) to keep the tax tables updated.

But I would highly suggest that you talk to an accountant first before mowing on any further. They will tell you about your fed ID, state number, unemployment, how much you have to pay in each month, each quarter, and each year.
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