How to set up a payroll

Discussion in 'Business Operations' started by flyingdutch16, Jan 16, 2013.

  1. flyingdutch16

    flyingdutch16 LawnSite Senior Member
    Messages: 465

    Hey guys,

    I've been in business for three years now and I'm thinking about hiring a helper during the mowing season. I my self am 18 years old and I'm at a point now that I need help in order to keep up with the work and more importantly school. Since I'm younger I want to do it the right way and NOT pay under the table.

    What forms and such I do need to get for tax purposes and such. I'm located in PA.

    I already talked to some one who is interested in working for me, a possible problem is that he is 14 yrs old. I Dont know the laws regarding to running power equipment and such. Plus child labor laws. If anyone could give me a pointer in the right direction that would be really appreciated.
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  2. Monroe74

    Monroe74 LawnSite Senior Member
    Messages: 322

    Talk to an accountant and a attorney that practice in business. They should be able to answer your questions better.
  3. LandFakers

    LandFakers LawnSite Fanatic
    from CT
    Messages: 6,309

  4. branchoutshrub

    branchoutshrub LawnSite Member
    Messages: 118

    If you want to grow your business and do things the right way, "invest" in an accountant. I could not function without my accountant. He answers all my questions and gives me great advice on how to keep things going good.
  5. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Messages: 2,763

    We use Paychex. Money well spent, we aren't large enough for office help and it alleviates us from doing the paperwork in house. Or you could use a CPA, either way, I left it to professionals just in case we get audited I didn't want anything to chance doing it myself.
  6. JFGLN

    JFGLN LawnSite Bronze Member
    Messages: 1,070

    I use a bookkeeper for the monthly stuff. It usually takes her 2 hrs to take care of everything. I see an accountant at the end of the year to prepare my taxes.
  7. Landscape Poet

    Landscape Poet LawnSite Gold Member
    Messages: 3,638

    What I do.

    First you have to get a EIN number. Employer Identification Number. You will have to do this if you are to have legal employees.

    I pay me employee weekly on the last work day of the week. I go to and use the hourly payroll calculator to figure out the withholdings etc. I staple the print out of this that looks like two check stubs to my employee's time sheet he filled out.

    My employee has a checking account at my bank. This allows me to transfer the money electronically to him. I have a record of the payment going to his account because the bank maintains my statement. I then have a seperate account which I transfer money to to cover his withholdings as well as my portion. This way when quarterly taxes are due I simply write a check from that account which is fully funded.
  8. McFarland_Lawn_Care

    McFarland_Lawn_Care LawnSite Bronze Member
    Messages: 1,445

    We use Advantage Payroll or ADP. No headaches - love it.
  9. flyingdutch16

    flyingdutch16 LawnSite Senior Member
    Messages: 465

    how much do you pay for adp?
  10. TX Easymoney

    TX Easymoney LawnSite Platinum Member
    Messages: 4,109

    Get quickbooks, takes 5 minutes to print and make tells you how much withholdinh to give to govt and can print 941, 940s w2, w3 straight from hassle at all

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