Does anyone do thei payroll themselves. I have only one employee

My company is in Ohio and I will be adding one employee and I want to do payroll taxes myself. Is it hard to do? Can anyone help me with this? Thanks

I’m not sure how different MN is from Ohio. But I did it myself up until 4 employees probably one of the dumbest things I did. I made an excel sheet that took at the different taxes fica, gov, state, Unemployment. Then I would do the filling’s myself. The individual steps are pretty simple it’s just doing them every month right and on time. It ended up turning into a mess for me. Because as I got more people and more stuff was going on stuff started to slip through the cracks. I didn’t create a system that I could use for growth, which would mean having it as easy to do for 1 employee as it is to do for 10 employees.

These are the 3 systems I looked at:

  1. Hiring out all the HR responsibilities and they are pretty much an employee of the staffing agency. The nice part is you aren’t liable to get sued by them for anything they take care of all insurance workers comp and taking out all taxes filling ect. The downside is that it’s 36% of payroll. So for a $10/ hr employee it would cost you $13.60/hour.

  2. The 2nd thing I looked at was using a service like paychex Payroll by Paychex: Payroll Tax Services, Human Resources, 401(k) and Benefit Administration personal payroll service. from 1-5 employees it costs i think $42 per payroll if you paid bi weekly or monthly. They take care of all the filings for you and ship the checks to your door all you have to do is sign them.

  3. The 3rd thing and the thing I do now is send the amount of everyone’s check to my accountant and he emails me back a pay stub then I write out the checks and attach paystub. Then every month in the mail comes a pack of my monthly taxes that I paid or I need to go to the bank and pay. He does everything fillings, end of year W2’s etc. and handles any problems. This service costs me $35/month plus any time he has to do to handle any problems.

The 2 reasons why I really like this 3rd option because it’s like having an accountant on my team, which I wouldn’t get from the 1st or 2nd thing. Plus he does my taxes so it’s all in one place for him to do.

There may be better options out there these are just the 3 best options I found. But I would be interested in hearing other ways people are doing it.

Cheers,

Don

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I do my own. I have an accounting degree and in my other life, I am a paid tax preparer

I lose money trying to do it myself. I can make way more money for the time it takes verses what I pay an accountant. My accountant does everything.
Payroll
Quarterly taxes
End of year taxes

I used to do it all, but the little I pay her is well worth it. I think it comes out to just under 1k a year.

If you are not currently using Quick Books I would highly recommend it the payroll software that comes with it is very easy to use, good luck to you.

Screw that! A lot of small business owners go out of business because they neglect or just don’t know how to do payroll taxes and they wind up with a huge liability that they cant pay. I used to use Prime Pay and I was paying $80 every two weeks for three people. I now use a local book keeper who accesses my computer remotely and prepares all the checks via quickbooks. They also debit my business bank account and make payments to the state and FEDS and file my quarterly reports. They charge me $45/hour and my bill each month is less than $40.00. Doing it yourself without knowing what you’re doing will lead to business failure. Hire a pro or hire someone to man the office and is experienced with book keeping. IMHO.

I am going to make a statement here. You need to know how and be able to do your own payroll. You will not understand, and cannot plan for the changes in the rules and regs if you aren’t doing your own payroll. I know it seems boring and complicated, but if you don’t want to watch your bottom line mysteriously dive down into the red, start paying very close attention to your largest single expense, labor

We do the payroll ourselves. We have a total of 9-15 employees that get paid each week. We use quickbooks. It is not that difficult if you just take your time in setting everything up. Once you know what you are doing it is easy. Quickbooks is great. We do have an acountant who deals with the quartley numbers for paying the Government and for our end of year stuff.

In Canada you can do it online. Fill in the blanks, it does the math. Then just print it out. Very easy. You used to have to use books and tables, not any more.

Same as Linda. We just don’t have as many employees, but my wife has no problem doing it and takes quarterlies etc. to a tax preparer.