a question for those with employees.

Discussion in 'Business Operations' started by lawnwizards, Mar 14, 2006.

  1. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    how do you know how much taxes to take out of employees checks? is there some sort of scale thats government mandated? thanks for all replies.:)
     
  2. Duck Dodger

    Duck Dodger LawnSite Senior Member
    Posts: 347

    When you call in and get an EIN (employer indentification #)they will send you a book with the scale in it.
     
  3. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    how much does an EIN cost?
     
  4. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    I use a service, well worth the money, Paychex. If you want to do it yourself the IRS does put out a book with lots of tables in it. You probably can find it on the net by now. I think its called a circular-E ? its been a long time.
     
  5. OnMyOwn

    OnMyOwn LawnSite Senior Member
    Posts: 372

    Save yourself a "LARGE" headache and call al local bookkeeping, or payroll company to do this for you. You can probably get the entire package of service for less than $50.00 per month. They take care of the checks, taxes and the liability / penalties from improper filing.

    It's a no brainer. You can make up the $50.00 expense in (1) additional hour of work, per month.
     
  6. impactlandscaping

    impactlandscaping LawnSite Silver Member
    Posts: 2,332


    No doubt, lol. This is what we use, and well worth the money.:waving:
     
  7. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    No charge for an EIN. You can even go on irs.gov and submit the request, which is what I did.

    Then Uncle Sam says "Aha! Now we gotcha! We know who you are, and we are watching!" :laugh: :laugh: :laugh:
     
  8. 6'7 330

    6'7 330 LawnSite Bronze Member
    Posts: 1,822

    In addition to the fein number, if your state has a state income tax,you will probably have to get a state ID, and withhold state taxes.You will need to set up an account to pay into unemployment with the state department of employment security.

    As other posters indicated, a payroll tax service would be worth the cost..because your head will be swimming when all of a sudden you are dealing with..federal and state with holding ,FICA,FUTA, state unemployment..forms W2,W3, form 941, form 940. form 1120 etc LOL.
     
  9. ODwyerPW

    ODwyerPW LawnSite Member
    Posts: 72

    a payroll company will also take out workers comp and disability too.
    saves you from estimating your payroll and paying premiums up front. frees up cash. as everyone knows cashflow is the major killer of LCOs.
     
  10. Livingreen

    Livingreen LawnSite Member
    Posts: 24

    Another option is to get Quikbooks for your invoicing, and then subscribe to their payroll service, which automatically updates your program whenever there are any changes:) It all depends on the # of employees you may have. I can't imagine looking through the tables to try and figure out how much taxes to take out:hammerhead: . The program will also fill out your annual and quarterly reports, but I have an EA look mine over before submission. The IRS doesn't like you to hold onto their money very long:nono:
     

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