I am a truck owner and just hired a driver. Can anyone advise me on how to pay the driver, who pays workers comp, ss and how to deduct taxes?
- JudyLv 76 years ago
http://www.irs.gov/pub/irs-pdf/p15.pdf has the info for federal. Don't forget state and local. You pay workers comp and unemployment com[. In some states, the employee pays part of unemployment. You both pay ss and medicare. There are companies like Paychex and ADP that will handle payroll, deductions and the required reporting for a fee. It's expensive for just one employee, but might be worth it. There's a lot of reporting involved, with some serious fines if you don't do it right.
- Anonymous6 years ago
(Disclosure - I am a customer but do not work for them or invest in them)
I highly recommend using a paycheck service like Paychex. Their fees to handle your taxes and make all the filings and deposits are ridiculously low for the good night's sleep you get in return. I have one employee paid twice per month via direct deposit (they do checks too, if you prefer) and it costs me under $80 each month. I would spend WAY more than that in my own time and effort, and run the risk of getting it wrong and getting in trouble with all sorts of government agencies.
You don't have to use them, but find someone. You won't regret it. It pays to spend a little for professional help and you can then concentrate on running your business and making money.
- troLv 76 years ago
first of all to pay employees you need to get an EIN from IRS and in that process they will provide you all the information you need about withholding taxes etc and the process of fling quarterly returns of wages
Circular E at www.irs.gov(also called publication 15) will also give you complete instructions about how to withhold taxes, www.irs.gov web site has it all
you pay worker's comp, it is an expense of being an employer
- Wayne ZLv 76 years ago
Realistically......you should see a local accountant.
No one can here can tell you everything that you need to know.