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Old 03-02-2008, 07:03 AM
 
Location: NJ/SC
4,304 posts, read 13,767,700 times
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I'm using Quickbooks for my bookkeeping and accounting. Soon I will have to set up employees and payroll. Do I have to use the payroll service? Do I have to use any payroll service and pay a fee? I will only have 3-5 employees which will all be paid as outside sales reps. (1099). What is the least expensive way to handle this? Thanks.
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Old 03-02-2008, 10:24 AM
 
Location: Boise, ID
1,356 posts, read 5,667,918 times
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Check to make sure your reps are really 1099 independent contractors. Part of that is if they perform the same service for someone other than you and if they can set their own hours. If they don't do the above then they are probably employees and you will need to have workers comp insurance and give them a w2.

If they are 1099 contractors then it is as simple as just writing them a check and giving them a 1099 at the beginning of the year for the previous year. You will have to submit a copy of the 1099 to the IRS but that is about it for you.

If they are really employees then you can do payroll through QB. You will need to withhold taxes and submit them. I recommend a payroll service because they do all of that for you. But my view is slightly biased because I use one and I have never tried to figure withholdings on my own.
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Old 03-02-2008, 03:03 PM
 
Location: NJ/SC
4,304 posts, read 13,767,700 times
Reputation: 2615
I formed a S-corp & LLC last year, so I have to add myself and pay myself. I'm already a 1099 contractor for another company and I'm a Realtor. My SO is my partner and I would like to add him as an employee. He currently has a part time job and gets a regular paycheck but he will do sales for our company. One is my cousin that's a stay at home mom and she will do sales for our company.
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Old 03-02-2008, 06:38 PM
 
Location: Boise, ID
1,356 posts, read 5,667,918 times
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We had two women working for us from home, one putting stamps on postcards and the other making phone calls. We had a workers comp audit and both had to be added to our regular payroll and put on the workers comp insurance. I checked with our CPA and sure enough they didn't qualify as independent contractors because of what I mentioned before. I would check with your CPA just be sure.

I don't think payroll services are very expensive. Ours is bundled with our workers comp insurance so they process the payroll at no extra charge.
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Old 03-03-2008, 07:55 PM
 
1,244 posts, read 1,771,947 times
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Default You can do it yourself

Quote:
Originally Posted by Rapture View Post
I'm using Quickbooks for my bookkeeping and accounting. Soon I will have to set up employees and payroll. Do I have to use the payroll service? Do I have to use any payroll service and pay a fee? I will only have 3-5 employees which will all be paid as outside sales reps. (1099). What is the least expensive way to handle this? Thanks.
To stick with your original question - You can do the payroll yourself.

Quickbooks is really best for people that have some accounting background - So, if you have a friend or even your own tax accountant that can come in for a few hours and get you aquainted with QB, that would be a good idea.

And, they don't have to be a QB pro - Any decent accountant will get the hang of it in a short time..

Take a day or so (like on a Saturday) and really go through QB, to get to know it. I suggest that you focus on properly setting up your item lists (for invoicing) and your General Ledger - Don't be afraid to collapse those items that you don't need, and add items that you normally use in your business - That is, set it up to your needs.

If you have a version on which you can set-up a test company, I would do that. That is, set up another set of books for a XYZ company - This way, you can test some different methods of doing things before doing them on your own books.

Overall, QB is pretty good - Though it is not all things to all people. But, if properly studied, you can really get the hang of it very well. And, it can do much for you.

Again, set up a test company, and try some things - Get to know it yourself...

And, use all the processes - It helps to properly record and track things. It may be time consuming at the beginning, but when you get the hang of it, you can post things quickly, and really be able to take advantage of the various reports it has.
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Old 03-04-2008, 08:32 AM
 
Location: Marietta, GA
857 posts, read 4,605,337 times
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When I first started using QB years ago I invested about $225 in a QB "Seminar in a Box" which I got from QuickBooks Training and QuickBooks Classes. If you are doint your own books it is the best money you will spend. It really taught me all of what QB is capable of doing, and it is several CDs and a study guide to go along with the CD lessons. This way, you can skip over the lessons that don't apply to your business and you can review the ones that do whenever you want.
I know you can do the payroll yourself, but I don't do payroll so I can't tell you much about it. I pay everyone as a subcontractor and let them worry about their own taxes. Plus, I set the company up as an LLC partnership, so my husband and I take draws, not salary, and pay quarterly estimated taxes.
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Old 03-04-2008, 02:07 PM
 
Location: NJ/SC
4,304 posts, read 13,767,700 times
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Migee - Thanks for the info. but my only question is Payroll. I already know how to use Quickbooks for other bookkeeping issues.

Northmeetssouth - Thanks, that's what I'm trying to find out. Can I pay everyone as a subcontractor and just basically write a check.

Niners - the people would be only getting paid a commission on sales, so it's not the same but thanks.
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Old 03-04-2008, 02:23 PM
 
Location: Marietta, GA
857 posts, read 4,605,337 times
Reputation: 835
Quote:
Originally Posted by Rapture View Post
Migee - Thanks for the info. but my only question is Payroll. I already know how to use Quickbooks for other bookkeeping issues.

Northmeetssouth - Thanks, that's what I'm trying to find out. Can I pay everyone as a subcontractor and just basically write a check.

Niners - the people would be only getting paid a commission on sales, so it's not the same but thanks.
If you are just paying some people a commission I would recommend treating them like independent contractors and just giving them a check for the full amount with no taxes taken out. Then you don't have to be bothered with payroll.
Set them up in your vendors list and check the box where it asks if they are eligible for a 1099, and when its time to pay a commission enter the amount like a bill and then go to "pay bills" and issue the checks.
At the end of the year you just buy the preprinted forms for 1099 at Staples or Office Max and print them up and mail them out, and they take care of their own taxes. Much easier than fooling with payroll.
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Old 03-05-2008, 05:00 PM
 
Location: NJ/SC
4,304 posts, read 13,767,700 times
Reputation: 2615
Quote:
Originally Posted by NorthmeetsSouth View Post
If you are just paying some people a commission I would recommend treating them like independent contractors and just giving them a check for the full amount with no taxes taken out. Then you don't have to be bothered with payroll.
Set them up in your vendors list and check the box where it asks if they are eligible for a 1099, and when its time to pay a commission enter the amount like a bill and then go to "pay bills" and issue the checks.
At the end of the year you just buy the preprinted forms for 1099 at Staples or Office Max and print them up and mail them out, and they take care of their own taxes. Much easier than fooling with payroll.
Thank you! That's what I was hoping to do.
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Old 03-08-2008, 11:42 PM
 
Location: TN
15 posts, read 47,712 times
Reputation: 10
You can go to the QB site and find qualified "Pro Advisors" in your area. He/she can spend an hour or two with you and teach the payroll tasks. (When we do training we charge $100/hr if that helps - may be less in your area).
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