Payroll Taxes?????

Discussion in 'Business Operations' started by RyanCanMow, Oct 29, 2002.

  1. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,841

    No, there really isn't. Don't even think of hiring them as sub--contractors. We've been over that one several times here. Do a search to find out more about why that's a really bad idea.

    Other than hiring temporary labor there's no way around doing payroll.

    Furthermore, if you think temporary workers are expensive, then I think you are grossly underestimating the cost of doing it yourself. Because it will cost you at least as much as the temporary place charges per hour to do it yourself.

    For instance, a local temporary agency might charge $13 per hour and pay the employee $8 per hour. And you might think it'd just be cheaper to hire your own employee and pay him $8 an hour. Well, I am telling you, that is far from true (unless you do something illegal). Once you add in workers' comp., taxes, Accounting fees, etc. it will easily be $13 per hour to have that employee work for you.
  2. AztlanLC

    AztlanLC LawnSite Bronze Member
    Posts: 1,045

    Well I use my accountant besides quickbooks because she makes sure all the reports are done correctly and the $500.00 that I paid her las year included everything form payroll, stimate taxes and end year tax report.
  3. dr grass

    dr grass Banned
    Posts: 242

    i forgot what the original post was about!!! lol i dont know about paying taxes on an employee because i dont have any!! ;) next year ill have some though :D pry make my job easier!!! lol

    shep :blob4:
  4. Nebraska

    Nebraska LawnSite Senior Member
    Posts: 525

    Employee Leasing aka Professional Employer Organizations. Check out
  5. Nebraska

    Nebraska LawnSite Senior Member
    Posts: 525


    Your employee payroll expenses are 61.5%?

    Here is what a typical employer is going to face in regard to payroll taxes:
    Fica: 6.2%
    Futa: .8%
    Medicare: 1.45%

    For a total of 8.45% or $8.45 for every $100 of payroll.

    Add to it:

    State Unemployment: Here in Nebraska our companies state unemployment is 3.5% of the first $7000 of each employees payroll.

    Worker's Compensation: Our compensation rate is $4.23 for every $100 of payroll....

    In this scenerio our total worst case percentage (before limits met) would be 16.18% or $16.18 per $100 of payroll.

    So you take the $8.00 per hour employee and that employee is actually costing you with taxes, comp etc a total of $9.29 per hour. That is nowhere near $13 per hour. Basically that Temp Service is making at least $3.71 per hour off the employee.

    All of this is much cheaper than a temporary service and it is all legal. You can't tell me that the cost of doing payroll is going to cost you in excess of $7000 per employee (2000hr)per year.
  6. bubble boy

    bubble boy LawnSite Bronze Member
    Posts: 1,020

    payroll really isn't that bad, at least not in Canada. government sends a mini program on diskette, just plug the # and deductions all worked out.

    i of course know squat about the US, but for canadians reading this it's pretty easy, and quick even for four or five employees.

    any more people than that a payroll company is good money.
  7. Nebraska

    Nebraska LawnSite Senior Member
    Posts: 525

    Quickbooks basic payroll is $99 per year. The program is under $300.
  8. Kent Lawns

    Kent Lawns LawnSite Senior Member
    from Midwest
    Posts: 870

    Payroll is like driving a car:

    Overwhelming at first (for some)

    In time, no big deal.

    Just follow the rules and you'll be fine.

    Do it wrong and you'll get killed.

    Really not much different than payroll.
  9. Harvestman

    Harvestman LawnSite Member
    Posts: 233

    We use a service called Paychex. It costs $60 a month and they take care of everything but W.C. And we do that ourselves. For the $60 they file all the proper quarterlys. The best $60 you will spend.
  10. lasher66

    lasher66 LawnSite Senior Member
    Posts: 395

    I know some guys that dont take no taxes out of their employees pay. The employee is responsible for holding their own taxes. Is this legal? What are the advantages/disadvantages. Thanks


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