16 replies
Does anybody know how to manually do payroll for 1 employee? Keeping track of filing and withholding requirements is a pain and payroll services are too expensive so I'm willing to trade money for time.
#payroll
  • Profile picture of the author iAmNameLess
    Is there a reason why you don't have them as an independent contractor? That would make it much easier. If not possible, check out patriot software.

    Otherwise just calculate it and do it 100% manually.
    {{ DiscussionBoard.errors[5536259].message }}
    • Profile picture of the author seomoney
      Originally Posted by iAmNameLess View Post

      Is there a reason why you don't have them as an independent contractor? That would make it much easier. If not possible, check out patriot software.

      Otherwise just calculate it and do it 100% manually.

      Because it's the law. How do I do it manually?
      {{ DiscussionBoard.errors[5536325].message }}
      • Profile picture of the author iAmNameLess
        Originally Posted by seomoney View Post

        Because it's the law. How do I do it manually?
        Are you in the united states? I'm pretty sure it isn't against the law to be a subcontractor or independent contractor. Send them a 1099 at the end of the year.

        Perhaps ask an accountant on what would be best for you. If you are unwilling to 1099 them, then you really are better off with software or services. Bad thing is, since you don't want to go the other route, then now you're liable for unemployment checks.
        {{ DiscussionBoard.errors[5536421].message }}
  • Profile picture of the author Dean Martin
    Originally Posted by seomoney View Post

    Does anybody know how to manually do payroll for 1 employee? Keeping track of filing and withholding requirements is a pain and payroll services are too expensive so I'm willing to trade money for time.
    When I started doing payroll years ago (just 3 employees then) I just set up a spreadsheet.

    It made it easy to calculate the monthly 940 & 941 payments and I learned exactly how everything works. After a year or so, I went with Peachtree and now use Quickbooks.
    {{ DiscussionBoard.errors[5540049].message }}
  • Profile picture of the author Entrecon
    You could work with something other than a Payroll service, like a local CPA. Find one that you plan on helping you with all of your business taxes and strike a deal with him. Maybe even help them with their website!
    Signature

    Visit My website http://kipferguson.com

    {{ DiscussionBoard.errors[5540081].message }}
  • Profile picture of the author rshorette
    If you are willing to trade money for time then you should go with a payroll service or find a company that will actually put your employee on their payroll for a fee. There is no way I would ever put a single employee on payroll. It's not worth the liability.
    Signature

    Rodney Shorette
    "When the going gets weird, the weird turn pro" Hunter S Thompson

    {{ DiscussionBoard.errors[5540227].message }}
    • Profile picture of the author hockeycoachdoug
      well said- use a payroll service- preferably a local one where you can actually speak to a human when you have questions. It's incredibly cheap and keeps you on the right side of your silent partner Uncle Sam. Don't fall for the national companies argument of doing your payroll online- it's so easy you can do it in the middle of the night in your underpants. Truth is, when you do it that way- you do all the work, and if you make a mistake, they say sorry- you did it. I own a payroll service in OH, been doing 25 years- use a service.

      PS- IRS loves you guys that try to mis-classify employees as independent contractors to get around paying payroll taxes. Remember these 2 rules
      1. Everybody is your buddy, until they're not
      2. If you can't afford to pay the payroll taxes, you can't afford to be in business.

      Follow those 2 rules- 90% of the problems roll off the side of the road before they roll over you.
      Signature

      Sincerely,
      Doug Parsell

      Payroll Solutions, Inc.
      1108 N. Reynolds Rd.
      Toledo, OH 43615

      (419) 531-3766
      (419) 531-9995 Fax

      Let Payroll Solutions make your
      payroll a 5 minute phone call.
      Checks, tax-work, and W-2\'s
      all for one low price.

      Mention this email and get your first
      month of processing for FREE.

      {{ DiscussionBoard.errors[5540346].message }}
      • Profile picture of the author rbecklund
        Originally Posted by hockeycoachdoug View Post

        2. If you can't afford to pay the payroll taxes, you can't afford to be in business.
        Maybe one of the wisest business tips I've read on this forum...
        Signature

        {{ DiscussionBoard.errors[5670863].message }}
  • Profile picture of the author Rose Anderson
    The IRS has very specific rules to define who is an employee and who is a sub-contractor. Ignore them at your own peril.

    It's not that hard to do payroll using Quicken. But you have to remember there are a lot of things involved including worker's comp, unemployment tax, federal with-holding, state with-holding, social security, tax deposits, 941s, W2s, W3s, etc.

    It's usually worth the price of a service or at least a local bookkeeper who has experience with payroll reporting. It can save you a lot of headaches and potential fines.

    Rose
    {{ DiscussionBoard.errors[5540411].message }}
  • Profile picture of the author sixpack01
    I've used "QuickBook's" its a great software, or you can go on a payroll deductions online calculator website. Perhaps even call an accounting firm to ask them in your local area if you'd like to do it online.

    Hope that helps,
    Jim
    {{ DiscussionBoard.errors[5541823].message }}
  • Profile picture of the author toodise
    There are plenty of payroll services that you can use that will charge you a set up fee then a monthly fee per employee.. but for one person.. it is not cost effective.. you could ask an accountant to show you how to do it and set you up to do it each quarter.. it really is pretty easy once someone shows you how.. depending on the state you live in there is only 3-5 taxes you have to pay...and again depending on the state you are likely small enough to just pay them annually. find a good accountant pay them for an hour of their time and ask them to show you how to do it and then have the accountant check your work annually or quarterly.. that is the cheapest way to do it.

    mike
    Signature

    Have an amazing day,

    Mike


    Learn to Double your Conversion Rate with your sales videos Easy Pro Videos

    {{ DiscussionBoard.errors[5541841].message }}
  • Profile picture of the author Gilgul
    I would hire a company. ADP/PAYCHEX are national and will charge you about $50/month for the service. You give them the hours, put money in the account and done. They mail the check, pay the state, the government, issue a W2, put up with legal compliance, deal with garnishments (child support/court/etc). They will answer any HR related question you throw at them. All for the $50/month. So worth it...

    You could go with contractors / 1099 but then, by law, you cannot give them set hours or they, by law, will be considered employees...

    Question is what is your time worth?
    {{ DiscussionBoard.errors[5541915].message }}
  • Profile picture of the author hwyler
    I would hire a payroll service provider in your area. I will save time and provide suitable compliance with HR regulations.
    {{ DiscussionBoard.errors[5670084].message }}
  • Profile picture of the author Seantrepreneur
    Some banks will do this for you if you have a business account with them. That's how we do it. It's way less of a headache that way and you know its getting done correctly.

    Sean
    {{ DiscussionBoard.errors[5671089].message }}
    • Profile picture of the author David Miller
      Tax Information For Businesses

      Been there, done that, never again. For the most part, as long as someone doesn't have to show up at a particular time, have set hours, and works primarily outside of your place of business they will qualify as an independent contractor in the eyes of the IRS.

      However, there are some states that love to stick their nose in your business and you need to watch out for what they want.

      It's bending the rules only slightly, but no one is going to bust you on it unless you're talking about really serious money.
      Signature
      The big lesson in life, baby, is never be scared of anyone or anything.
      -- FRANK SINATRA, quoted in The Way You Wear Your Hat
      {{ DiscussionBoard.errors[5671566].message }}
  • Profile picture of the author goldog
    The rules for an employee can be pretty strict. But stick with what David said and you'll be alright. I think you can get a QuickBooks trial free. Get a Tax Guy to point you in the right direction if you need it or find a local bookkeeper. You don't need a CPA.
    {{ DiscussionBoard.errors[5671644].message }}

Trending Topics