[Hamons]

I am going to be hiring an employee to work with me this summer and want to pay him legitimately. I have never done -this- before.

What are the first steps I need to do or where do I look to find out?


This will be the only employee I hire for right now.

Any and all help would be appreciated.

Thanks!

[Stonehenge]

Buy a packet of applications at Office Depot.

Get payroll tax tables on your quickbooks.

Print off some W4's (or is it W2's?) for new employees to fill out.

Run whatever background checks you can prior to hiring.

Maybe I've been doing this too long and don't remember anymore, but there isn't a whole lot to it. Finding a good employee and keeping a good employee - those are the hard ones.

[Hamons]

I have the employee already picked out. Just needed direction on the paperwork side.

I guess I assumed it would be much more complicated than that!

[TrickyDick]

You should look on your state government's web site. They usually have lots of good info for employers.

[Matt Kulp]

You will need to have w-4's filled out, as well as sign up for state payroll taxes. Unemployment, fica, medicare, etc.. You will also need to initiate a workmans comp policy with your insurace company. Quickbooks tax tables is a good investment as Stone said.

[stoneridge]

Let your insurance company know.

[Lanelle]

You also need to have an I-9 (I believe that's what it's called)filled out and have a copy of your employees SS card and another legitimate form of ID such as a birth certificate---the acceptable items are listed on the I-9 on file. This is a federal requirement. If you don't have a federal ID for your business, you'll need that for filling withholding taxes for your employee. Remember that you will be paying half of the FICA out of your pocket so figure that into your hourly rate.
Are you having fun yet?

[PSUscaper]

Get your workmens comp estimate first to see where you will be at. It may surprise you. It is based on the estimated payroll you will have, and then is a calculated off of that. For me in NJ it comes out to around 10.87 per 100 in payroll. It adds up quickly when you start paying overtime, which is why you may start considering hiring more employees and working less hours rather than having less employess making more money and hitting you up with hire workers comp. bill at the end of the year.

Because you are a younger company, you may not qualify for many programs so you get thrown into a state pool for workmans comp. It lasts for about 3 years or untill someone thinks you have a safe record to pick you up. You will need to estimate what your employees payroll is before you hire them. If it is say, 24k, you start off with 24k in workmens comp, and usually have to send in a deposit for close to 40-50% of the premium right off the start. At the end of the year, they will do an audit, and if you go over, you pay more. If you go under, they will refund you.

After a safe record for a few years, you may qualify for a discounted program, but, if you get a claim against you, you get it socked back to you.

Also, look into a payroll service. For the headaches associated with payroll, you may just want to have someone else deal with it. It is not that much and can save a lot of headaches. All you do is call them with your hours and they do the rest. You can do bi-weekly which saves you money as you only have to have them pre-pared twice a month rather than 4 times, saving you money.

[johnkeegan]

I'd also strongly advise to get a payroll service. Unless you are a wiz at bookkeeping and accounting, it can turn into a nightmare quick. I use Paychex, their fine but also check with ADP or other firms. They do all the tax considerations, payments, direct deposit etc. They even have a service to get Worker's Comp taken out weekly so you can avoid the initial 50% down when you start. (Though, later, once you've established a comp. track record join a safety group througn an insurer and it will be much cheaper).
....I know how to make money at landscaping not bookkeeping or accounting.

[hnbullock]

I agree about having a payroll service - and suggest using them for everything, taxes and payroll. Although I am just entering the business of landscape design, I've had my photography business for 20 years and can't say enough about how much I value Paychex (and Quickbooks).

Get references and check with others in your industry - Paychex is a bit more expensive but in my experience using both Paychex and ADP - well worth the slightly higher expense especially in terms of customer service.

Good luck!