The process of hiring an employee? - HelP needed

by thejlw
6 replies
I've used Elance, ODesk, and so on for jobs but now I'm likely going to look to hire an actual employee.

Are there any guides for this?

I'm most concerned with paying the employee.

Things like Federal Income Tax, State Tax, and so on are confusing. I'm not sure how that works and when that money needs to be sent to the government.

Are there companies that will handle this for me? Do companies like ADP, Quickbooks, and so on handle this?

Is there any way to figure out the 'real' cost of any employee?

If I pay someone $15 an hour at 40 hours a week that's $600 weekly but I know I pay taxes on top of that and there's also things like benefits to consider.
#employee #hiring #needed #process
  • Profile picture of the author savidge4
    The minute you hire a one employee things change fast. You need to look at things like workers comp. Do you have a EIN number? getting and placing those stupid posters in your office ( I got nailed with this one the first year I opened in WV - just didnt think about it ) You need to register your new employee to the new hire reporting program.


    There are many payroll services that will deal with your employee taxes etc. I personally suggest finding a local accountant that will spend a bit of time with you the first year to get everything right and run your payroll, your state and fed taxes and all that stuff through them. it really does make life simpler.


    And don't forget the DAMN posters!




    Originally Posted by thejlw View Post

    I've used Elance, ODesk, and so on for jobs but now I'm likely going to look to hire an actual employee.

    Are there any guides for this?

    I'm most concerned with paying the employee.

    Things like Federal Income Tax, State Tax, and so on are confusing. I'm not sure how that works and when that money needs to be sent to the government.

    Are there companies that will handle this for me? Do companies like ADP, Quickbooks, and so on handle this?

    Is there any way to figure out the 'real' cost of any employee?

    If I pay someone $15 an hour at 40 hours a week that's $600 weekly but I know I pay taxes on top of that and there's also things like benefits to consider.
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  • Profile picture of the author MikeFriedman
    You should really consult with an accountant that can make sure you are in compliance with all the regulations and make sure you are in compliance with the tax code. I have known people who got in trouble with issues related to employee taxes. The IRS does not mess around with that stuff.
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  • Profile picture of the author thejlw
    Thanks for the replies.. I'll definitely try to find a good accountant.
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  • Profile picture of the author iAmNameLess
    Are you trying to find an employee, that works in your office, under your supervision or will they be like contractors, working from home, unsupervised?

    Yeah, you cover unemployment tax, workers comp, and half of their federal taxes.

    Setting up with Intuit Payroll would be a good idea, they cover a lot of the things you need.
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    • Profile picture of the author thejlw
      Originally Posted by iAmNameLess View Post

      Are you trying to find an employee, that works in your office, under your supervision or will they be like contractors, working from home, unsupervised?

      Yeah, you cover unemployment tax, workers comp, and half of their federal taxes.

      Setting up with Intuit Payroll would be a good idea, they cover a lot of the things you need.
      I'm looking to bring someone in to my home office for about a month and train them and then allow them to work out of their home.

      In terms of finding an accountant is there a particular 'type' of accountant I'm looking for?
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