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Wondering what are the steps to paying employees legally

Discussion in 'Business Operations' started by INTEGRITY LAWN, Mar 25, 2002.


    INTEGRITY LAWN LawnSite Member
    Posts: 20

    I am thinking about hiring someone for labor this year. They will be using my equipment, thus my employees. Have no idea, where I would start? Do I need special software to track their wages, and taxes? What will I be paying aside from there hourly wages? I am new to this, and would appreciate some advice, or help. Thanks!
  2. snospark

    snospark LawnSite Member
    Posts: 4

    Paying employees legally is very important. What we are currently doing is using a book keeper. We send her the employee hours weekly (1st thing you do is have the employee fill out a w-4)... via fax. She then faxes back to us the paystub detail, with all of the deductions for taxes. When quarterlies are due she simply faxes us all the info we need along with mailing any paperwork that applies to us, we make the payments and it's taken care of. Right now, we are in the process of taking over doing our own books using Quickbooks payroll. This can be done once you have learned how to do it. For now, just starting out I'd recommend hiring someone to do it for you. It isn't very expensive and it's worth it to save you the headache. You also might want to look into a Payroll Service, check your local listings. Good luck!
  3. Kent Lawns

    Kent Lawns LawnSite Senior Member
    from Midwest
    Posts: 870

    Hiring a payroll service (bookeeper) is the simplest and it won't cost alot with only 1 employee.

    Get a W-4 from the employee (Name, Add, SSN and deductions)

    Get a work comp policy.

    Your payroll service/bookeeper will handle all reporting, etc.
  4. garydale

    garydale LawnSite Senior Member
    Posts: 813

    I use Quick Books, Great system!

    It leads thru everything you will ever need to do business.

    I have a local QB service come in at end of each quarter to close out and find my screw ups.

    It's money well spent.

    Good Luck!
  5. scott's turf

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

    I don't know why everyone is afraid of doing this yourself. Go to you local IRS buuilding and get a book that has all the charts for withholdings. I use an excel sheet with all the formulas for the correct withholdings for each employee. Simply plug in the hours work and it will list off their fed tax, ss, and medicare. No state tax here. Also it calculates my matching tax requirements as well. Whatch were your money goes. No one will do it better than you.
  6. scott's turf

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

    Also Intergrity, you will have to have to pay for workman's comp and state and Federal unemployment tax.

    INTEGRITY LAWN LawnSite Member
    Posts: 20

    What does workmans compl run, and if I pay lets say 8 an hour, what ball park will I pay for federal and state unemployment.
  8. scott's turf

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

    Unemployment is not bad but the WC can vary quite a bit from state to state. I pay 10% of wages to WC. You have to have it though.

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