Paying Employees

Discussion in 'Business Operations' started by INTEGRITY LAWN, May 23, 2002.

  1. INTEGRITY LAWN

    INTEGRITY LAWN LawnSite Member
    Posts: 20

    Need Some help!!!!?

    I am employing a guys services. He does a great job! Eager to work, punctual, and does more than what he is asked. Has been a pleasure to work with him. I haven't employed services before. I am paying him from when he gets here, till when he gets back - (Includes all travel time). Is this customary, or do you do it the time they actually work at clients home? I want to be legal in all I do, but am very confused about payroll, and taxes, etc. I need help as to where to go to do this correctly. I have Quick books, and have heard they offer this service. What does this cost, is it hard if I do it myself, and where can I get some affordable assistance to get this started? Can someone tell me what it is I have to do to report wages to gov't and pay whatever I need to pay? Also considered having a co. do this for me, but would like to know if it is worth it or not? Is it to expensive for just one person? Please advise! Thank you.
     
  2. smburgess

    smburgess LawnSite Senior Member
    Posts: 469

    By FEDERAL LAW his time starts from when he arrives to work (at the predetermined time set by you) and ends when he returns and you tell him he can go home. You have to pay travel time.
     
  3. brentsawyer

    brentsawyer LawnSite Senior Member
    Posts: 663

    Don't even think about it, just do it. Call a payroll company, I use Paychex have them do all your payroll. It is way too timeconsuming, expensive if you screw up and way too cheap to have them do it for you, about $20 per payroll period, mines every two weeks. They will assume full responsibility if anything goes wrong, average penalty is about $700, more then you'll spend with thtem the entire year.
     
  4. Mowingman

    Mowingman LawnSite Platinum Member
    from Texas
    Posts: 4,656

    Figuring payroll with all the deductions is easy if you only have a couple of employees. My CPA showed me how to do it and it takes me about 15 min. a week to do payroll for my 3 employees. The quarterly reports take about 30 min. to do. I thought it would be difficult, and was going to hire one of the payroll services to do it. However, after a short session with my CPA, I decided to save the money and do it myself. Get your CPA to show you how, and try it before paying someone else. :D
     
  5. Harvestman

    Harvestman LawnSite Member
    Posts: 233

    We also use paychex. Its the best 60.00 a month you can spend.
     
  6. scott's turf

    scott's turf LawnSite Senior Member
    from NH
    Posts: 949

    It takes me about 5-10 mins/month. I use excel and just put the hours each employee worked and the formulas I set up calculates the fed tax, ss, and medicare. No state tax here but that does not complicate things much either. I save money and get to see where all my money is going. My employees get paid weekly with occasional bonusses depending on the weeks profitablity.
    You can get most of the tax info you need at your local library.
     
  7. WashMoBrink

    WashMoBrink LawnSite Member
    Posts: 19

    My wife's business specializes in "full service accounting". Too bad your not closer. She does payroll, insurance, billing, payables, and taxes (but you sign the tax form, she's not a CPA).
    Charges a local bar with 10 employees $250 /month. Charges local drywaller with about 20 people, but a "ton" of invoices $600 / month.

    Long story short, the drywaller can go charge $40 an hour for his time on something that used to take him 10 hours a week and he was always behind because he hated it. Moneymaker is, she can do it in 3 hours a week on PC / internet.
     
  8. KenH

    KenH LawnSite Bronze Member
    from CT
    Posts: 1,622

    I have been using Quickbooks for a while and use their $75 per year basic payroll service. I do all the paying myself, just pay quickbooks for the forms and tax table updates.
     
  9. Old Guy

    Old Guy LawnSite Member
    Posts: 59

    I use Medlin shareware. Works great! You can download the software and try it out. If you want to purchase I believe it was $38.00 to register it. You have to buy paychecks but I guess you could print them on plain paper, to get the pay stub, and write a hand written check. I bought the checks. It prints out all the various reports you need. I like it!
     
  10. By FEDERAL LAW his time starts from when he Clocks on and ends when he Clocks off

    You don't have to pay him for lunch.

    And MR. technical here can give you the low down on the sites to check out on some of the other things you can and can't do.
     

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