Hiring first employee

[JBSurfs]

Hi guys, I'm looking for a little help. I'm starting a new service business. I am wanting to hire an employee as well. Need employee for separate licensed area. My question is with paying him. Basically, when you get a paycheck, it typically shows soc sec and taxes withheld from the gross amount. How do I go about this or is there a company that handles this for 1 employee companies?

So, if he gets $100, do I hold out all of the money and then need to pay it to the state or federal gov later? I have some experience with Sales and Use taxes in-state. Are the rest like that, where you pay it every three months? Any programs to help with it?

[DerekS]

If you're a service business, pay him as an independent contractor and 1099 him at the end of the year. This saves dealing with payroll companies and Tax/FICA withholdings.

[Patel1212]

is better to wait for good employee I'm not hiring bc we need guys NOW NOW NOW this will be distaster

[myfayt]

Just issue him/her a 1099. They file it at the end of the year, and they pay the taxes. This leaves it out of your hands. The W-4 is for multiple employees, like if you have 3+ that work part time or full time year round.