Hiring First Employee

[acrajchel]

So I will admit that I have had friends help me in the past and got paid cash. However, I am at the point where I need to bring someone on on a fairly regular basis. So, I know that I will need Worker's Comp insurance, but what I don't know is the rest of it.

I use Quickbooks Online for billing and accounting, and I know they have a program for payroll. Does anyone know if this program is fairly all inclusive as far as withholding taxes properly, on both the employee side and my side of it. I know I have to take out taxes for for them, and I think that I also contribute for some of it as well. If it won't do this, does anyone have any recommendations on a service or company that does do this or can help?

Thanks

[jrs.landscaping]

Hire a payroll company you'll thank me later.

We use paychex, we had a hiccup a few years ago with our old account manager but since then they're excellent to deal with.

[Sprinkler Buddy]

Worker's Comp insurance, check with your state. You may not be required to have it until you reach x # of employees. Not including yourself!

[Steve]

There is a really insightful guide to worker's comp in Kentucky here

http://labor.ky.gov/workersclaims/Pu...0Guidebook.pdf

When it comes to payroll withholding, there are a bunch of items you need to be aware of.

• You need to withhold for the employee portion of Social Security tax.
• The employee portion of Medicare tax
• Federal income tax
• Potentially state income tax
• Court-ordered withholdings for things like child support or debts.

[Chilehead]

I use Intuit payroll. It's very user-friendly.

[lxarth]

Hire a payroll company you'll thank me later.

I agree with this. I'd go one step more and have a tax place go over your Quickbooks and make sure it's all correct. I'm going to switch to having a local tax preparation business handle the big stuff for me, like the quarterly reporting.

It's like buying a tool. Once you get it you wonder why you didn't buy it sooner.

[Steve]

When you get to the point of hiring your next employee, let us know how the whole process goes for you and which way you decided to go to keep track of the tax with holdings.