“Put your money on me. ‘Cause I can barely breathe. Put your money on me.” -Arcade Fire
You are ready to hire employees but know that it is a process that takes a lot of time and expense.
Let’s talk taxes but please understand this is a general overview. It’s a complicated subject and this is not intended to replace professional advice.
As an employer you must deposit and report employment taxes.
You will need to file Form W2 to report wages for each employee.
You must withhold taxes from your employees according to the IRS withholding tables.
You must deposit your withholdings. The rules for these are very specific. There are very specific rules outlining your deposits.
You also need to withhold part of SS and Medicare taxes from employee’s wages and pay a matching amount as the employer.
You also need to withold the 0.9 percent Additional Meidcare Tax on an employee’s wages and compensation if they exceed a threshold amount
South Carolina has unemployment taxes that need to be withheld and remitted.
The costs add up easily and following the rules can be a headache. A good payroll processor can make our life much easier and keep you in compliance!