Either run them through a temp service or hire a payroll service. In addition to calculating taxes a generating payroll, you also need to: File 941 Form monthly. File 940 Form Quarterly. File State withholding taxes monthly. File STATE unemployment form quarterly. Buy, manage Work Comp Insurance and track overtime. Mantatory Work Comp audit annually. Remit federal annual employment summary. Submit W-2's. These REQUIRED and other potential tasks (unemployment forms) are better handled by someone who does this for their job. By the way, forget to file your 941 on time? The IRS DOUBLES your amount owed. Read your local business journalm happens all the time. Bottom line: Your time is better spent earning money.