Payroll  Accounting

The best way to learn this is to:

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Step 1.)   Order a free Federal Government Circular E and download Form W4.

      Fill out the W-4, understanding that one can claim as many kids as they wish, even if they have none. When they do taxes all will be made right.  But if you over-claim you may owe taxes instead of getting a refund. 

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    Use the Circular E booklet to pay yourself $2,000 every two weeks.
  Do the calculations to write the check.

  Then be aware you may have state taxes to withhold for in the state you operate from.
 

    Then realize when you get into multi states there are more state taxes and state laws to be aware of.

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Step 2.)  Watch a few short videos on the process.

            1099 or W2   How to pay 1099   How to pay Draw or W2
           Paying Employees

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Step 3. )   When you get it done right for your state, make a date with someone who does payroll.  Bring a nice lunch to their office on a non-payroll processing day.
 

Have them explain what the process is like.  Don't let them fire up their computer as they will show you what buttons to push and you don't need to know that. All communication will be lost at that time.

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Note that Quarterly totals are required and are used to file quarterly reports and end of the year reports and Form W2 so employees can do their taxes.

Note that payroll taxes must be paid a few days after payday.

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Therefore, from your you will get a feel for the flow of payroll.

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Note also that if an employee is court ordered to pay a creditor, a Garnishment notice is received by your business telling you to withhold money and remit it.  If that isn't done, the business owes the full debt!

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