payroll

Discussion in 'Business Operations' started by causalitist, Mar 28, 2008.

  1. causalitist

    causalitist LawnSite Senior Member
    Posts: 610

    what is an easy way to get set up with payroll? ... all i want to do is make sure i withhold the proper taxes and pay em when i should, etc etc.. i've been meaning to do this because this year i'll be using full time help , and theres no way im not writing it off.

    thanks ..
     
  2. mslawn

    mslawn LawnSite Senior Member
    from LA
    Posts: 483

  3. DBL

    DBL LawnSite Silver Member
    Posts: 2,219

    start looking for local companies. they are always better than a non local or internet company. they know the local taxes and are there for support...for 6 employees we pay about 1k a year in payroll fees including quarterly taxes ,w2's, and 1099's
     
  4. lawntactics

    lawntactics LawnSite Member
    Posts: 5

    I would use a local payroll company. Overall its inexpensive, however be prepared to start paying BWC, unemployment and taxes monthly and quarterly. I would pay them as a subcontractor and 1099 them. It is legal, it will save you lots of money and you can still write the wages off on your taxes.
     
  5. BOEpavers

    BOEpavers LawnSite Member
    Posts: 93

    Without knowing how big your payroll is (# of employees) I can't say for sure, but we use Quickbooks Contractor Edition for our basic accounting and payroll. We print the checks on a biweekly basis. At the end of each quarter we send the file to our accountant and she completes all the quarterly tax forms required (local, state, federal, unemployment, etc.)
     
  6. causalitist

    causalitist LawnSite Senior Member
    Posts: 610

    I only have 1 employee, i just dont want to pay 10k and not be able to write it off.

    My question is, out of curiosity, is it cheaper to pay someone $10/hr, pay all insurance,unemployment etc, and then be able to write off all wages paid or to pay $10/hr cash? i would think it would be cheaper to write it off. from my estimates its about 10% for everything but workmans comp, have no idea how much that is...
    so if i pay $10k over the season, 10% plus workmans comp(??) are my extra fees($1000), but i get a 10k deduction saving me around $3000

    total expense seems fairly close right? is that your guys experience?

    also, lawntactics in order for someone to be a subcontractor, they must provide all the tools and you cant have a say in how the job is done, just what the result is.. my guess is that they are using your mowers/trucks, .. no way that would fly with the irs ... everyone else agree?
     
  7. rmmllc

    rmmllc LawnSite Member
    Posts: 222

    I really isn't legal to pay employees as a sub. If they find out THEY have to pay self employment of over 15% they might report you. The IRS has a 7 or 10 point checklist to see if they are a legit sub or employee (they have a checklist for about everything). They might do a 1099SS (super-snitch) and claim YOU are responsible for the employer's 7.2% contribution PLUS all back fees for not filing AND worker comp, unemployment, etc. Be careful about who you call a subcontractor.

    Sorry- I should have checked the box to quote Lawntactics post #5 (not attacking you, just saying be careful)
     
  8. BOEpavers

    BOEpavers LawnSite Member
    Posts: 93

    You have to be careful with workmans comp. I know we get a questionaire about every quarter asking if we have any subcontractors working for us and if we were to answer "yes", a bunch of questions about what they do, how they're paid, etc. I'm pretty sure that unless they are hired through and angency that provides their WC, you have to provide it. We don't hire subs, so we don't have to answer. I can tell you that as a hardscaping only contractor (no landscaping) in PA, we pay $12.80 per $100 of payroll for workman's comp.
     
  9. rmmllc

    rmmllc LawnSite Member
    Posts: 222

    Wow, that's pretty high. If you haven't had any claims you should be able to request a re-evaluation to see if they can adjust, or shop around if there is more than one provider. Here in UT I think I pay about $2.80 per 100. Good point about WC though- if something happens and you are calling them a sub, but they are an employee- better have great asset protection because they will go after everything (once an injury lawyer contacts them and tells them they can get $1.3M for them cutting their finger)
     
  10. BOEpavers

    BOEpavers LawnSite Member
    Posts: 93

    Our rates are high because we are a Hardscaping-only contractor which has higher risk factors than a landscaping classification. We have checked several providers and rates are within the same ballpark. Not that we don't keep checking though!!
     

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