I hired an employee, now what do I do? Payroll taxes seem to be an area that scares every new employer, which it should. Not withholding the correct amount or not paying your payroll taxes or not filing the quarterly and year end reports can put any business out of business.
If you’re thinking of hiring a new employee, there are some simple payroll tax rules to keep in mind. When you employ 50 or more full-time workers, you’re considered a “large employer” and are generally required to provide health insurance coverage or pay a penalty. If you employ someone in your home you may also need to pay payroll taxes. Do you only hire employees during the holidays? Special filing rules may apply when you only hire employees at a specific time of year and by notifying the IRS of your seasonal status, you’re not required to file returns for quarters when you have no wages or tax liability.
Give us a call or contact us online for more information about payroll tax rules, recordkeeping requirements, and documentation for employees. We’re here to make sure your payroll goes smoothly.
Did you hire seasonal employees?
‘In some states you may have to request classification as a seasonal employer by completing a special form. Qualifying as a seasonal employer can affect your staff’s eligibility for unemployment benefits as well as your experience rating, which determines your tax rate.
Find more information about the rules for hiring seasonal employees.