employees pay deductions

Discussion in 'Business Operations' started by bobbygedd, Mar 13, 2005.

  1. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    i have an accountant that i pay to do everything. when we issue our guys paychecks, we deduct the neccesary amount, document it, and bring it in quarterly to our accountant , we then send in a check, and pay his fee. isn't there another way of doing this? i've been told that i don't have to withold taxes. all i have to do is keep track of thier hours and pay, and provide them with this info at years end. is this true?
     
  2. Likestomow

    Likestomow LawnSite Senior Member
    Posts: 997

    Well I'm up for a desktop fishing trip... so let's see what he catches.
     
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I have a payroll service company do everything. All I have to do is send them an email with each employee's hours.
     
  4. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    i'm trying to eliminate accounting fees. the man is a crook, and i'm starting to seriously dislike him. does anyone know if it is legal to do it the way i suggested?
     
  5. Littleriver1

    Littleriver1 LawnSite Senior Member
    Posts: 811

    NO it's not legal to do that. You must be a tax collector. It's the law.
     
  6. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Under your method, how would SS tax, FICA Medicare tax, Employer Medicare tax, NJ State tax, NJ Unemployment tax, and NJ Employer Disability tax be deducted from your employer'e check and sent to the appropriate government office?

    If you don't want your accountant to do this work, get QuickBooks and do it yourself. Or, do it like my firm does.
     
  7. NickN

    NickN LawnSite Bronze Member
    from Alabama
    Posts: 1,010

    Rodfather is doing it the best way and the RIGHT way.With that said,I think bobby is trying to reel in a 1099 response.Honestly,1099's are what most bulding contractors around here use.At least the small ones.Is it legal?More often it is not,but they don't seem to get caught.
    Also,as bobby already knows,your customers pay for the accountant fees,so it's no big deal.Just add it to the price of doing business.It's much less than hiring a fulltime payroll accountant.
     
  8. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Other than sheer convenience, the main reason I use a payroll service company is because they will be up to date on any changes in the tax laws and/or percentages for witholding for both employer and employee. You think I'm gonna know this kind of stuff LOL? I doubt seriously you will catch this kind of tax accounting reading in my "library".
     
  9. Mueller Landscape Inc

    Mueller Landscape Inc LawnSite Senior Member
    Posts: 489

    One thing to keep in mind when using a payroll compnay is if you ever jump ship with them and hire someone else, the payroll company will not file end of the years forms and the new method better account for those filings. I learned the hard way. Also, Quickbooks doesn't deal with state filings. For me, I use the accountant. It costs more, but everything is in the same location.
     
  10. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,414

    Actually Rod it took me some work this winter but I now have WC through the payroll company ADP they use the Hartford and I no longer have to worry about this part of business. There is no end of the year audits there is no up front payment plan none of that crap you pay as you go if my guys have a rain week and we do not work I do not pay if they work 70 hours one week that’s billed accordingly. At the end of the year were square no over payments or worse no underpayments requiring an additional amount.

    Bobby I have an accountant as well but I never had him do payroll makes no sense he cannot do it as cheaply and aggravation free as a payroll service. My partner calls in the hours and the only thing I have to do and this is not always the case since he can do this as well is sign the checks. I could have them auto signed but that’s a five dollar per week feature and how often do you get paid to make your autograph so I save a few hundred a year.
     

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