Thankful For Your Family…. Business?
Landscaping businesses are often family endeavors. While this can combine the best of both worlds (personal and professional), it isn’t always smooth sailing. Click here to read more.
You'll have to file and deposit payroll taxes like Fed income tax deductions, FICA (ss and medicare of about 7.5% deducted from his pay plus a similar amount that YOU match), and state income taxes.
You may have some unemployment insurance premiums to make as well.
You may want to consider a Workers compensation policy which covers you if your employee gets hurt on the job and sues you. You probably are not required to have it in your state with just one employee, but you may wind up working for your employee one day if you don't and he hurts himself due to something he claims you should have prevented. Or even if he just claims it, as the policy's forgotten big value is to pay for your defense if sued. Most folks can't afford a lawyer to defend themselves if an employee finds an ambulance chaser in the phonebook.
You will also need to notify your commercial liability insurer and let them know you have a new yahoo(I mean employee) out there who they may decide will wreak havoc and so they may raise your rate, as it's assumed employees are more accident prone than owner operators.
Finally, if the employee so much as backs the truck into the garage, you should have him on your commercial auto policy, otherwise you aren't covered if he takes out something in the truck. That will mean a rate increase as well, as they assume the owner is a little more with it driving than employees.
Add it up, and one can see how it's hard to compete with the cheaters out there who just hand someone cash and don't deduct it on their own taxes since they don't pay any anyway!
Call around get some quotes, payroll services are the way to go.
There are some really large companies that even find it useful to use payroll services.
Find one that takes care of everything, good ones will agree to pay any penalties for anything they misfile. They handle it all and some only charge like $45 or 2% per payroll.
IF you consider all that hiring costs you in headache paying someone really helps. Do what you are good at --- mowing/landscaping. Let the professionals take care of employee needs.
Sending Checks/Direct Deposit, Tax withholding FED STATE SS MEDICARE, unemployment, workers comp, employee handbooks, insurance (they can under some conditions offer group rates), discipline actions legally (most companies mess up disciplinary actions horribly placing themselves at risk), provide you as employer with good info, and more.
Good advice guys....I was needing that info too. I thought I read somewhere about not having to do some of this until you have three employees, what is this about, I cant remember?
My brother in-law would be helping me but I'm not sure it will be 40 hrs a week. Is there different laws for part time and full time workers?