Hiring first employee need help

Discussion in 'Employment' started by walkinonwater27, Jan 2, 2020.

  1. CowboysLawnCareDelaware

    CowboysLawnCareDelaware LawnSite Senior Member
    from DE
    Messages: 649

    To the OP, you need to do your own research. Unless rules have changed $599.99 and less, you don't have to file any taxes.
  2. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Messages: 19,632

    OP better do the research as you should.

    I've undergone a UA audit twice in the last 3 years. We did not withhold UA for "casual labor" and were dinged for it. Another lawnsite member also found this out, he started a thread on it. Heck, my sister is a CPA and said we don't. I told her she can take it up with the Dept of Treasury.

    So 3 years ago my understanding was the same as yours, today, I know the difference. Sorry to burst your bubble, but you are wrong.
  3. greenleafgreenscapes

    greenleafgreenscapes LawnSite Member
    Male, from Wi
    Messages: 160

    The $599.99 thing is if a business pays a sub, you don't have to 1099 said sub, but it still has to be reported and taxes paid on it.
    With employees it doesn't matter if $6.00 or $600 it is supposed to be reported and all taxes paid or subject to fines.
    Been there done that
    Mark Oomkes and starry night like this.
  4. starry night

    starry night LawnSite Gold Member
    Messages: 3,798

    My CPA told me many years ago that if you pay someone even for a day, it was correct to do all the withholding. I have followed that advice.
    Mark Oomkes likes this.
  5. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 16,839

    "in the beginning" Just get a company like paychex or ADP and sub out your payroll to them.
    You call them once a week and say "sam worked this many hours" they tell you to have "x" amount of money in the bank account so the check will clear and they mail you the pay check, you hand it to the employee.
    At the end of the the year they will supply the W2.

    Focus on growing your business, leave the "unknown" to someone else.
    you can learn the process later and decide if it makes sense for you to do it in house or if your time is better spent contracting and making more money.
  6. DLL LLC

    DLL LLC LawnSite Member
    Messages: 54

    Yes, love it¡ Easy to use, great customer service and no where near the cost of ADP or paychex
  7. cold-beer

    cold-beer LawnSite Member
    Messages: 198

    Hire the employee you want, and then run them through a temp agency and write it off as an expense.

    Just make sure your insurance covers temps
  8. grassmonkey0311

    grassmonkey0311 LawnSite Gold Member
    Messages: 3,508

    I had a UA audit last year and got hit as well.
    Mark Oomkes likes this.
  9. grassmonkey0311

    grassmonkey0311 LawnSite Gold Member
    Messages: 3,508

    That's why I was hit on my UA audit...I was told by various people the temp agency covers UA, but the State of MD said I was supposed to be paying it. Besides, around here, temp agencies charge an insane amount and the 'laborer' hardly does any labor.
  10. cold-beer

    cold-beer LawnSite Member
    Messages: 198

    Interesting, I live in Oregon, and lots of small businesses do this and have been doing it for years. All you're doing is hiring a contractor, so I don't see how they can bag you for anything extra.

    I'm a solo guy, and it costs me just over $20 an hour to hire through a temp agency if I want to pay my guys $14 an hour. I only hire guys with experience through the temp or guys that work for other outfits that are basically on loan because they're slow. I've gotten a few slugs but mostly decent workers.

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