Hired Your First Employee In Santa Rosa? Here Are Your Tax Obligations

April 13th, 2018 → 3:31 pm @ // No Comments

Hiring a first employee is a milestone for any commercial establishment, of course, but also leads to a certain amount of paperwork related to taxes. You need to make sure your business is compliant not just with the IRS, but with federal and state agencies. This is where a qualified financial planner in Santa Rosa can help.

Start With A Number

When you hire someone, your Social Security number needs to be replaced with an Employer Identification Number (EIN) as your tax ID. This can then be used for the opening of a business bank account or applying for a business license, among other things. It is also necessary before you start paying your first employee, as any qualified financial planner in Santa Rosa will inform you. The number will also have to be given to your new hire and will help you determine how much federal income tax to withhold every payday. This does not apply to independent contractors, as they require a different form.

It helps to familiarize yourself with payroll processing, a lot of which can be done using an online application. A financial planner can explain how this works and also help you understand state taxes or …Read More

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