If you are hiring your first employee, you may be confused about the many requirements for processing and paying employees. And you may have considered outsourcing your payroll – having someone else do it. The logical person is your CPA; he or she may have a bookkeeping person on staff who can help with this task. Another possibility, if you have just one employee, is to use your accounting software (like QuickBooks) do the work. A third possibility is to have an outside service do this work – Paychex or ADP are national companies that can do this, and QuickBooks also has a service.
Whatever you do, don’t hire that first employee without figuring out WHO will be collecting information, processing payroll, paying the payroll taxes and sending in reports. To paraphrase an old commercial “It’s not nice to fool with the IRS.”
For complete information on this subject, check out my e-book “Paying Your Employees” on the dcpracticesuccess.com website.
