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Paying yourself or others a payroll check does not mean simply writing a check and labeling it “payroll”. You have to withhold taxes and then pay those taxes to the appropriate agencies. There are four types of taxes to withhold:
- Federal income tax (rate varies based on filing status and exemptions claimed on the W4)
- Social security (6.2%)
- Medicare (1.45%)
- State withholding (there can be more than one state to withhold and the rate varies based on filing status and exemptions claimed on the W4)
You may need to pay these taxes on a monthly, quarterly, or on an annual basis. It depends on how much you pay yourself and how much taxes are due to be paid. The forms to file include:
- Employer 941 for Federal, Social Security, and Medicare
- Employer 940 for Federal unemployment taxes (annual only)
- State 941 for state taxes withheld
- State unemployment
This can be a lot of work and time, but I am happy to assist you with setting up an account through OnPay. I am an OnPay partner that can offer you special pricing as well as the expertise required to get everything set up with them, Federal authorities, and state authorities so you can start paying payroll. Whether it’s just you, other employees, you and additional employees, or maybe even contractors (no payroll taxes). I will assist with the hiring process (getting all of the required data and forms), making sure you have the appropriate state accounts, and I can enter/process payroll or train you so that you have complete control over how much and how often payroll is processed. If you are a bookkeeping client of mine, payroll is included in your monthly fee. Otherwise, you can pay just to manage the payroll and that typically starts around $65/month.
