Started a new business, payroll questions

Thanks I will check them out. How long have you used them?

Be careful with your 1099 "employee". There are a lot of rules regarding that type of pay.

We use Quickbooks for our payroll and do it internally as my company is small like yours. It does all the calculations for you.

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Just started a subcontracting home health company.

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Enjoy getting rich. Lots of potential in this market.

I use Quickbooks Payroll. Its $25/mo. + $1.50/mo. per employee.

Yep. You can set it up to do 941 taxes each period. I pay mine monthly.

Awesome thanks again guys. Met with someone from ADP last week and almost walked out when the rep gave me the prices, highway robbery for a business (starting) as small as what I'm doing.

what is your company structure? LLC scorp c-corp?

I would sit down with an accountant and see if you really need a payroll, not sure that you could justify the extra expense when it is just you and a 1099 employee

If you are an LLC everything rolls back to you personally anyway and no taxes to be taken out for a 1099 contractor

whenever you get W2 employees is when you need a payroll company

It is structured as an LLC. I'm more worried about getting a payroll setup for myself than my 1099 assistant.

A little more background would probably be helpful here. I'm a physical therapist who works as a full time W2 employee at a private outpatient practice. I get a few afternoons a week and I have saturday mornings free where I also contract as a home health PT on the side on a 1099. In 2013 it was a pretty even split between my W2 salaried earnings and my side contracting gig. On the home health side, I also supervise a physical therapist's assistant (PTA) and get a little cut every time they do a home visit. The PTA was an employee of the company we both work for.

In 2014 I will have the home health company pay my company directly, and I will pay myself and a PTA that I hired and keep a significantly larger chunk of each PTA visit since it is my employee and not the larger home health company's PTA. I mainly wanted to do the payroll system to keep me current on taxes so I wasn't making these large payments every quarter. Since I mostly live off of my salaried W2 income I was going to pay myself relatively little from my business, and keep some of my money in the business account to save for other things later on. Hope this clarifies things a little. And I am aware that if I keep money in the business and want to move it to personal accounts later on ill be taxed on it, but it will likely be saved for something big like a house or if I wanted to open my own outpatient office later on.

Really no issue, I just thought it may be easier to stay current and have a better idea of what I really have at a given time if I put it through a payroll system. Have a nice emergency fund saved and the quarterly payments aren't ever really a hardship, but i had also figured with the payroll system I could keep up with my Roth IRA contributions instead of (again) doing another lump sum. Based on what I'm reading from you guys though it seems like that might not be the case.

Who is your IRA with? You may be able to set up weekly auto-transfers into it. Also, consider a separate savings account to do weekly auto-transfers for your quarterly estimated tax payments. If your W-2 job pay is high enough, you can increase your federal and state withholding on there so that you don't need to make quarterly payments.