Murrieta School of Business: Topic: Payroll 101
Date and Time
Tuesday Oct 11, 2016
9:00 AM - 10:30 AM PDT
October 11th at 9:00 am
Location
at the Murrieta Chamber Office
25125 Madison Ave., Suite 108
Murrieta, CA 92562
951-677-7916
Fees/Admission
Free for Murrieta Chamber Members
$25.00 for Future Members
Please RSVP as seats are limited.
Murrieta School of Business: Topic: P...
Description
Presented by Daneen Ashworth, Merdian Payroll
Payroll 101
- Entity Type (Sole Proprietor, LLC, C-Corp, S-Corp)
- Sole Proprietor can have employees.
- LLC (Limited Liability Corporation) can have employees.
- C-Corp can have employees.
d. S-Corp can have employees and officers are required to take a “fair wage”.
- Federal and State ID#’s/Workers Comp
- IRS issues an EIN.
- EDD issues a number as well.
- These numbers are used for the taxes.
- You must have these to do payroll.
- Responsibility of the business owner when processing payroll
- 10 different taxes per check (11.66% for a new business)
- Depositing of taxes in timely manner (per payroll/quarterly)
- 6 Federal filings
- 8 State filings
- Timekeeping and Attendance
- Signatures needed
- Electronic approval (if ee has his/her own log in)
- Different Methods
- Spreadsheet
- Software program
- Program connected to payroll
- Biometric
- Traditional clock in/clock out device
- Workers’ Comp. Insurance
- With traditional, you pay a deposit, your payroll is estimated and at the end of your term you will have an audit. Typically you will owe money (balloon payment) or will be owed money (refund).
- With Pay as You Go, you pay per payroll period based on actual payroll.
- Rates vary based on industry
- 1099 vs. W-2 Employee
- 1099 contractor generally has his/her own liability insurance
- 1099 contractor is under his/her own control (hours, duties)
- No taxes are paid on a 1099 contractor
- If it is found that you are paying a W-2 employee as a 1099 contractor, you will be fined:
- Employer taxes
- Employee taxes
- Penalties