Legally hiring and paying an employee

[Rag$2Riche$]

This is my first business and my first employee. Is it safe to try to hire and pay an employee without having a CPA? I have no knowledge of legal matters or how to go about this. Obviously I can go to the irs.gov website and educate myself as I have already begun doing but is this something that is so extensive and risky if done wrong that I should not bother handling myself?

 

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[jon.a]

What do you need an employee for that you can't out source?

 

[royemunson]

Yes hiring employees entails a lot more than people think. No you don't need a CPA, but if you must hire someone I would highly recommend outsourcing any payroll since there are quite a few reports to consider, law changes, etc. It can be a bit time consuming and worth the fee you'll pay to outsource it.

Joe

 

[Rag$2Riche$]

What do you need an employee for that you can't out source?

I was actually originally planning on trying to hire him under an independent contract but the risks of getting in trouble for that are too much I believe. He is an outbound marketing call center manager working from home with regular hours so I believe that he must be hired as an employee. If this is not the case then I would be all for that!

Yes hiring employees entails a lot more than people think. No you don't need a CPA, but if you must hire someone I would highly recommend outsourcing any payroll since there are quite a few reports to consider, law changes, etc. It can be a bit time consuming and worth the fee you'll pay to outsource it.

Joe

Thanks Joe for the useful info. Who could I be outsourcing the payroll to? As in what job title would I be looking for that provides such a service.

 

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[biophase]

You can use a company like Paychex. There are many companies that do the whole payroll and taxes thing for you. They charge about $50-$100 a month depending on the employee's pay cycles.