I own a small business and need to take taxes out of my employees checks. How do I do so?

Question

I own a small business and need to take taxes out of my employees checks. How do I do so?

Answer 1

The best advice I can offer is to hire a bookkeeper or accountant.  They know all the in's and out's of taxes and business income and can keep you out of the IRS's office.

Barring that, go to your local office store and buy an accounting program such as Peachtree or something similar.  It's what I used when I did the books for an incorporation company I worked for.

Answer 2

DO NOT hire an accountant or bookkeeper.

DO NOT do payroll yourself.

DO NOT buy Quick Books and subscribe to their payroll service.

Contract with a mid-sized payroll service. Get some references for some local CPA firms. This is the most cost-effective advice you will ever receive. Errors with payroll taxes will sink or endanger a small business faster than any other single issue.

Generally, they will do all the set up of the basic employee data. Then, once a week, on Monday, you call or fax or email them the hours worked by each employee. You also give them the details of any new employees this way. They create the paychecks and either mail them to you or deliver them by Thursday or Friday. They debit your bank account directly for the wages, taxes and their fee each week.

They file all payroll tax returns and make all tax payments and print W-2's at the end of the year.  

Answer 3

Check in your phone book under Federal Government and look for Internal Revenue Servvice - Taxpayer Assistance Division. These folks will do that for you for FREE. Just bring in all paperwork including pay info,deductions,Social Security numbers and all your paperwork  showing you're the owner and your federal employer ID number.