New Employee Payroll

Discussion in 'Business Operations' started by thomaslawn, Mar 23, 2006.

  1. thomaslawn

    thomaslawn LawnSite Member
    Messages: 88


    I am planning on putting a new employee on payroll. He has worked with us now for a few years on a contract basis, but we are looking to make him an employee. Here is my question: in regards to Social Security, unemployment and all the other deductions that must be made on his paycheck where do I begin to find this information.

    Can this info be found on the IRS website? We are also looking into worker's comp. Any help would be greatly appreciated. Thanks!
  2. 6'7 330

    6'7 330 LawnSite Bronze Member
    Messages: 1,821

    Firstly, you will need a FEIN number.If your state is like Illinois, you will have to have an account for withholding state tax.Workers comp, you purchase from a insurance company.In addition you will need a account with the state department of employment security to pay into unemployment. I would advise talking to your accountant ,he can fix you up with all the departments and numbers you will need.But you can find info on the IRS site,and you can apply for an FEIN number yourself.
  3. CutsLawnCarePlus

    CutsLawnCarePlus LawnSite Member
    Messages: 41

    You may also want to get something like quickbooks if you do not have it. Trying to figure out numbers manually can take a lot of time.
  4. 6'7 330

    6'7 330 LawnSite Bronze Member
    Messages: 1,821

    Quickbooks or Peachtree and In-addition a payroll service,if he only has one employee cost would negligible and well worth it.
  5. evergreenedmond

    evergreenedmond LawnSite Senior Member
    Messages: 310

    I use a payroll service & highly recommend it
  6. StBalor

    StBalor LawnSite Senior Member
    Messages: 798

    I am in the same boat. I called a few payroll companies but in the end i went to a local accountant. I just walked right in and told him what i was planning on doing. He kept me in there for about an hour explaining to me all the things i needed and even gave me copies of paper work i would needed. Never charged me a dime for this info. This is why i am going to let this guy take care of my payroll. He is gonna charge me 48.00 a month for payroll services that include my quarterly returns. He has been a big help and i figure i can also learn more from this guy.
  7. pennypincher

    pennypincher LawnSite Member
    Messages: 34

    I agree with this 100%. I do accounting work for several small business' and things go a lot easier the more I know about their business and the more the client knows about what I am doing. Dont be afraid to ask a "dumb" question(there aren't any). And dont be shy about telling an accountant what he might not know about lawn care work.

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