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It almost sounds like you've gotten behind the wheel of big rig without having ever driven a car. If I can make a suggestion, visit this site:
I have no connection to or financial interest in this site -- it's just a very logically arranged small business primer and reference source that allows you to drill down into deeper and deeper levels of detail on each topic. It will help confirm what you already know about the subjects you asked about, and help you discover and ask more specific questions about the things you need to learn (the things that people in this community can offer advice or assistance with).
I'm sure someone will suggest SCORE, which is also a great resource (and free).
Hope that helps. Welcome to the community and best wishes!
In California we have an Employer Guidebook provide free annually by way of our EED (State). Any accountant should be able to answer your question on payroll taxes and program your QuickBooks or other accounting software with the necessary formulae. You can look into general standards on the question and do it all yourself. However, you don't want to mess it up. Your employees could get angry and you could be auditted. I recommend looking into payroll services either offered by a local CPA or a proprietary service. ADP is my preference in CA. They are probably in your area and it is worth the fees. That free handbook or State website will provide you with all the necessary labor laws. In CA, if you have less than 20 employees, you do not have to comply with FMLA guidelines but you should still file COBRA waivers etc upon termination. Almost everything you need to watch out for is usually noted on the Labor Law poster I think all businesses who employ must have posted to include minimum wage, equal opportunity, etc. I believe associating profitability with employees is important to establish early on and would hopefully be figured in advance through your business planning. You might refer to SCORE on that. I think it is very subjective on a case by case basis. Off the top of my head, I almost always advise setting base wages lower and bonussing off defined productivity measures to keep the rate attractive. More successful companies reflect the value of outstanding employees and pay accordingly. However, if the hire doesn't work out or if your industry takes a hit, then at least you are not tied to it. You generally cannot reduce a wage once it's set. If you are going to offer health insurance, then do consider an HSA plan combined with employer contribution. Since you are asking the question flat out, it may behoove you to take a HR/ Business class or read up. Payroll typically represents the most expensive overhead in a small business and you need to make sure your finances are managed to take the hits that can arise in tax adjustments, work comp audits, and the like. A lot of businesses look to LOC to meet payroll. If you do it right, employees can be the difference to help your business grow and make your business a pleasure. If you do it wrong they can bring you down and be the biggest headache you ever imagined.
Employees and payroll, Welcome
Who are you?? Where are you?? What kind of a Business did you start??
Do you have a Business Name?? A Federal I D Number??
What did you do prior to opening this business??
There have been some good answers from Quickbooks to SCORE, to having an Accountant.
There are also Payroll Companies that will prepare your payroll and pay your payroll taxes for your company, You also have to establish a procedure manuel.
Good luck, LUCKIEST
My name is Lurean Alston. My company name is Favorable, LLC. I do have a fein. I started a home based business. I do know that there are payroll services that can help. I was an independent contractor before owning my own.
Lauren - I am running a Accounting/Payroll/Tax Prep firm on the East Coast. Let me know if we can help you out.
We are extremely competitive and custom pricing for Payroll services, or you can go for the complete accounting services.
Please let me know if I can help.
Sounds like you need to get to your accountants office ASAP. A portion of the payroll taxes comes from the employees paycheck prior to issue, the rest comes from you, the employer. Depending on your payroll liabilities, you may need to start making payments soon. It is important that you find out your responsibilities right away before you have a problem.
How many employees do you have? Where is your business located? What are your state employment responsibilities? Do you have workers compensation insurance?
Is there a Small Business Development Center in your area? These counselors provide a wealth of information for new businesses.
These are a lot of questions, I know. But I am feeling a sense of urgency here. You jumped in the water, then asked for swimming lessons.
Elite Financial Services, LLC
Several years ago I met a very interesting and delightful man who told me how he started his business. He was a truck driver initially and had been born deaf. This may seem difficult to believe but all true.
While driving he ntoiced that there was a great demand for doing payroll for small business owners. He eventually became one of the biggest employers in his state providing employees to small business owners as well as taking care of all of the payroll functions. Not only were the small busines owners alleviated from dealing with benefits as they were using outsourcing...insurance costs are lower due to large group rates, etc.
He was definitely one of the most interesting gentlemen I've had the priveldge of meeting. And I doubt I will ever forget how charming a man can be even when born with a severe handicap. He became an avid flyer and loved flying all around the country. He picked me up for my first date on a small plane to have lunch in San Francisco for some fresh fish that I love. If you like, I could call him for you. It would give me a good reason to get in touch with him.
Luckiest and Lighthouse are by far the best posts on here, and many
other topics. just want to say thanks for the knowledge you drop on
this site......it's wonderfully insightful, and above all most useful.
when i started my business i had the same questions. I had to learn
the hard way. If i had just paid the CPA fees to get their services
well each state seems to have different rules and regs. the feds do
not. all though the feds do seem to change yearly. the IRS.GOV
web site is were i learned the hard "stuff", do I hire Self contractors
or reg employees. ect.ect. i found out that if i opened a Bank of
America business account they do alot of business "stuff" for you.
they are pretty good at servicing small businesses.
i started from independent to home business to stand alone business.
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I have just started a new business. I would like to know the fundamentals involved in after the hiring process has been completed. How is the taxes deducted from the employees? How do I profit from their work? What is the guidelines for employees' benefits? How many employees to have in order to establish benefits? I am brand new to business owning and would like some great information and resources.