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Taking Taxes Out for my Workers ??????

Discussion in 'Lawn Mowing' started by Pro-Lawn, May 30, 2001.

  1. Pro-Lawn

    Pro-Lawn LawnSite Member
    Messages: 74


    I have been in the Business for 5 years now , and have i went thru alot of workers. I have never taken taxes out, always paid them in cash. But now that im getting bigger and doing alot more high end work and need more help i am going to halft to start taking taxes out. Where do i start. WHo do i need to get in touch with. I am TOTALLY lost. If there is someone with more wizdom than I please write.
  2. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Messages: 1,912


    I'd see a good CPA ....quickly .....those employees should have been 1099 at year end ......there are some BIG time tax issues with cash under the table
  3. CMerLand

    CMerLand LawnSite Senior Member
    Messages: 393


    You might want to make an appointment with an accountant as well. If they are employees then they are not eligible for 1099s, they get W-2s at the end of the year.

    1099s are for subcontractors. The IRS has a great big list of things that determine whether a worker is an employee or a sub. Quick and easy is if you set the workers hours, provide the workers equipment and detail how the work is done then you have an employee.


    Once you hire an employee, you will need a workers comp policy, and employer tax id # and then be required to make payroll tax payments monthly. Quickbooks has worked great for our payroll for years but we always have our accountant go over our reports and fill out the quarterly tax reports.
  4. Pro-Lawn

    Pro-Lawn LawnSite Member
    Messages: 74

    Is there a plus side of taking taxes out ? Anything at all ??
    Or is it something you just got to do ??
    Thanks for the input so far.
  5. parkwest

    parkwest LawnSite Senior Member
    Messages: 678

    I can't believe someone would come on a public forum and state they haven't been withholding/paying employee taxes for 5 years.

    The plus side of taking out taxes would be staying out of prison.
  6. HOMER

    HOMER LawnSite Gold Member
    Messages: 3,183

    Yes, if you employ-you tax the employees. Benefits are a little tax break at the end of the year and freedom from prison.
  7. kris

    kris LawnSite Bronze Member
    from nowhere
    Messages: 1,578

    My thoughts exactly parkwest!!! wow
  8. Pro-Lawn

    Pro-Lawn LawnSite Member
    Messages: 74

    First of all i would like to say for all the flames i just got that i know for a fact i have NOT broken ANY tax LAWS , I HAVENT EMPLOYED enough workers yet , i halft to have at least 3 full TIME.
    I was asking a simple question, you dont know the whole story dont always assume someone is not doing what he or she is supposed to do. Were supposed to be here to help each other. ? Ohhh wait a min. No were not , idiot born every min.
    GLAD im NOT one of em.
  9. parkwest

    parkwest LawnSite Senior Member
    Messages: 678

    You may want to get better counsel on this matter, soon! Trust me, the gov't wants their cut no matter if you have 1 employee or a million.
  10. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Messages: 1,415

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