Lawyers, I Just Hired my first Employee. Can you help....?

I own a "2 car" Cab Service here in the Mid West. It's set up as a Limited Liability Company. I have been in business for two years. All of my drivers are currently Sub Contractors...No Employees! I have recently hired a 17 year old to clean the cabs every Sunday afternoon for 4 hours at a time for $10.00 Per Hour.

My question is, do I have to go through all the trouble of W2's And Payroll and workman's Comp and all this other stuff just to pay 1 person $40 a week to clean out 2 taxicabs? Can I just pay cash or at the very least can I hand write him out a business check for the $40.00 I asked my Business Attorney this very same question. She said I should'nt be asking her these things. And if it we're her, off the record she would just pay him cash with no paper work involved. Any Idea?

honey

Just pay him under the table. If you put him on the books, you will have to take the deductions (SS, Medicare, Federal, State, and Local taxes) out of each his paycheck that will leave him virtually with nothing.

v b

Find a new business attorney. This one is telling you to break the law.

You cannot pick and choose which laws to follow. Your cab cleaner is doing the work at your place, your tools, your instructions, etc. He *is* your employee. Unfortunately you do have to do the pay checks, the withhold, the 940s, the 941, W-2s etc.

Go to a tax preparer (find an EA). Have them show you how to do the paperwork for the first time period/year. Then save it. With one employee, the forms aren't that hard to do if you are cloning the previous one. Just figure out the most you will be paying this kid and when you have to get your deposits in. (PS, if you don't have an EIN yet, get one.)

Froggy

YOu as an employer are required to pay certain taxes, you are not required to withold the taxes from the employee. They are required to pay them, however. You are resposible for the w2 and payroll and alot of other stuff. YOu could pay them under the table if you are into breaking the law. Or you could just make them a sub-contractor like the other people.

CkBusiness19

You are in a sticky situation because you can not hire the 17 year-old as a subcontractor, since he is not of legal age to enter into a subcontractor agreement. He would have to be 18 years old to enter into any type of agreement.

Since you CAN NOT employee him as a subcontractor, you have to go through the trouble of the w-2's, payroll, workman's compensation, etc.

DO NOT listen to your Business Attorney. What she told you is against the law and she can be disbarred for providing incorrect legal advice. Just as she did.

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