Employees insurance taxes etc?

Discussion in 'Business Operations' started by Drivefaster35, Jan 29, 2008.

  1. Drivefaster35

    Drivefaster35 LawnSite Senior Member
    from Midwest
    Posts: 367

    Ok I've had a few guys work for me here and there over the past couple years all of which I had payed as sub contractors. This year I'm going to be just to big to have them mork as "sub" contractors. I haven't worked for anybody but myself for a long time and really have very little knowledge of what all is entitled in having an employee and paying taxes, insurence, workmans comp and whatever is included any advice or pointers would be appreciated.

    P.S. of course I will be talking to my accounted about it but I won't see him tell next month and figured it wouldn't hurt hearing some advice before talking to him.
     
  2. haybaler

    haybaler LawnSite Senior Member
    from ma
    Posts: 511

    pay for the payroll service through your LOCAL bank. they will do everything for you (w2's,940's,941's monthly deposits, quarterly reports, unemployment insurance, new hire reporting, SSA...) You call in the hours every week and they can deposit the money right into your employees bank account and do the taxes and you don't have to worry about a thing.
     
  3. Drivefaster35

    Drivefaster35 LawnSite Senior Member
    from Midwest
    Posts: 367

    Do a lot of people do it that way? Is there a charge for such a service?
     
  4. haybaler

    haybaler LawnSite Senior Member
    from ma
    Posts: 511

    Of course, everything cost money. Time cost money (you could be out working instead of doing paper work) also there's big penalty's for filing/paying employment taxes late. you mention you payed workers as sub contractors? that is illegal if they were using your equipment and you told them what to do. also if they really were subs you have to have proof of insurance from them, and send them 1099 misc at the end of the year. these things will come back to bite you if you get audited even a couple years from now. so get it right the first time.
     
  5. Gmgbo

    Gmgbo LawnSite Senior Member
    Posts: 382

    I do it thru quickbooks, you hvae to pay like 200 or 300 extra, but it fills in all the 940, 941, w2, ect. And it figures out how much you owe the state and federal so all you do is print out the check.
     
  6. Drivefaster35

    Drivefaster35 LawnSite Senior Member
    from Midwest
    Posts: 367

    Exactly why I need to do it right now. However they did have their own insurance and I do 1099 them at the end of the year but your right and now I'm trying to fix the problem and do it the right way.
     

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