Need help calculating payroll & budget for a start up?

Question

I'm in the process of starting my own company. It's only going to be a handful of people to begin with and the rest on contract when needed. The question I have is how do I handle the payroll for my employees and freelancers?

I would be getting the contracts directly from clients and then have to pay my people accordingly. This means until I get payed I cannot pay them.

How do I calculate their taxes and how much I can afford to pay everyone if all I know is how much the client will pay?

I've never done anything like this before. Is there any book you'd recommend or some kind of software I can use to help me figure all this out?

Answer 1

First things first. You should have a business plan. It will incorporate these issues. Page 101 in the reference below will be helpful.

But to answer your specific questions:

when you run a business and employ staff you need to pay your staff  weekly, fortnightly or monthly. This will depend upon the terms of their employment.  Government Income tax offices usually provide you with forms detailing how much income tax you will need to withhold and send to the Tax Office. You will need to check if there are any laws specifying the minimum wages you may pay. In addition there are a number of insurances you will need to have: workers' compensation and public and product liability are some of the most important. There are a number of other business insurances you should also consider. Get advice from an insurance broker. For yourself, you need income protection insurance, and you should also have life assurance.  

Answer 2

I would recomend you hire an accountant or bookkeeper to help you with this.