payroll taxes

totaleclipse1 · 12-14-2005, 12:54 AM

Hello.. I need help.. I recently started myself on payroll. Unfortunately the company I am using completely screwed up. I told them I didnt want taxes taken out , although that might have been a mistake, but on the business end.. as owner, don't I have to pay those?? I am really confused and do not understand what they sent.. So before you tell me to speak to an accountant... I am seeking some basic account advice or imput.... THANK YOU!

ZABAZU · 12-14-2005, 12:57 AM

So you own a salon and had a company do payroll for you?

ZABAZU · 12-14-2005, 12:58 AM

What did they send you?

parrot head · 12-14-2005, 08:02 AM

You're the salon owner, you're responsible for taxes on your net profit. But , what you take out of your salon is a DRAW and no taxes are due on that draw if your draw isn't coming from profit. If your a salon owner, You must be paying estimated taxes to the IRS every quarter. This is all that's required for your withholding.

ramcat · 12-14-2005, 08:28 AM

Also consider if you are incorporated, then the corp is paying you a salary and they must pay taxes on that.

clubtan1 · 12-14-2005, 09:31 AM

If you are truly taking a "pay check" you must pay taxes on those amounts according to Federal Regs and what ever you state regs are. You are required to file the 941 Form every thirty days and pay the payroll taxes if you issue "pay checks". You don't have to deduct the tax amounts from your pay check but you do have to pay those taxes every thirty days.

tropicgirl · 12-14-2005, 09:35 AM

No, you dont have to pay taxes as the owner. At the end of the year you will pay a self employment tax. Do not hold taxes out on yourself or you will have to match the withheld amounts of social security and med. This will cost you a lot in the long run. It is much better to have none taken out and pay the self-employment tax. Thats what it is for. It is only around 15 percent of your wages. Then you get to subtract half of that tax from your gross wages so that it helps to reduce (minimally) your end income tax.

Go to irs.gov and look up publication 15.

tropicgirl · 12-14-2005, 09:37 AM

and 941 forms are filed every quarter.

Neon Beach · 12-14-2005, 11:18 AM

Bottom line, you have to pay taxes, a little at a time or a lot later. Here, if you are a propreitorship, you take a draw. And the business is taxed the same as personal taxes. With a Crop, you can go on payroll, make the necessary deductions as you would an employee. You are then taxed on those wages, and the business is taxed as a Corp..

caribbean tan man · 12-14-2005, 11:27 AM

why not just get a payroll company that does it all for you! i used to do this in my other business and they only charged me $25 per check and i got paid bi-weekly!

they did everthing taxes and all check came in the mail

12-14-2005, 12:54 AM	#1 (permalink)
totaleclipse1 I love Derf!! Join Date: Feb 21 2005 Location: NEw York Age: 31 Posts: 1,939 Rep Power: 11	payroll taxes Hello.. I need help.. I recently started myself on payroll. Unfortunately the company I am using completely screwed up. I told them I didnt want taxes taken out , although that might have been a mistake, but on the business end.. as owner, don't I have to pay those?? I am really confused and do not understand what they sent.. So before you tell me to speak to an accountant... I am seeking some basic account advice or imput.... THANK YOU! __________________ OFFICIALLY MRS. V !! HOLLA!

12-14-2005, 12:57 AM	#2 (permalink)
ZABAZU Join Date: Apr 14 2003 Posts: 719 Rep Power: 6	Re: payroll taxes So you own a salon and had a company do payroll for you? __________________ *If it was easy, everyone would be doing it...*

12-14-2005, 12:58 AM	#3 (permalink)
ZABAZU Join Date: Apr 14 2003 Posts: 719 Rep Power: 6	Re: payroll taxes What did they send you? __________________ *If it was easy, everyone would be doing it...*

12-14-2005, 08:02 AM	#4 (permalink)
parrot head Police Department Join Date: Jul 13 2004 Location: Menomonie, Wi. Age: 67 Posts: 1,261 Rep Power: 6	Re: payroll taxes You're the salon owner, you're responsible for taxes on your net profit. But , what you take out of your salon is a DRAW and no taxes are due on that draw if your draw isn't coming from profit. If your a salon owner, You must be paying estimated taxes to the IRS every quarter. This is all that's required for your withholding.

12-14-2005, 08:28 AM	#5 (permalink)
ramcat Join Date: Oct 26 2004 Location: Florida Posts: 3,224 Rep Power: 6	Re: payroll taxes Also consider if you are incorporated, then the corp is paying you a salary and they must pay taxes on that.

12-14-2005, 09:31 AM	#6 (permalink)
clubtan1 Join Date: Jan 31 2005 Posts: 3,317 Rep Power: 42	Re: payroll taxes If you are truly taking a "pay check" you must pay taxes on those amounts according to Federal Regs and what ever you state regs are. You are required to file the 941 Form every thirty days and pay the payroll taxes if you issue "pay checks". You don't have to deduct the tax amounts from your pay check but you do have to pay those taxes every thirty days.

12-14-2005, 09:37 AM	#8 (permalink)
tropicgirl I love Derf!! Join Date: Jul 13 2003 Location: middle america Posts: 1,015 Rep Power: 8	Re: payroll taxes and 941 forms are filed every quarter.

12-14-2005, 11:18 AM	#9 (permalink)
Neon Beach I'm Banned Join Date: Nov 30 2000 Location: Ontario Age: 45 Posts: 52,065 Rep Power: 0	Re: payroll taxes Bottom line, you have to pay taxes, a little at a time or a lot later. Here, if you are a propreitorship, you take a draw. And the business is taxed the same as personal taxes. With a Crop, you can go on payroll, make the necessary deductions as you would an employee. You are then taxed on those wages, and the business is taxed as a Corp..

12-14-2005, 11:27 AM	#10 (permalink)
caribbean tan man DERFTALK FBI AGENT Join Date: Jul 29 2003 Location: northeast Age: 32 Posts: 5,098 Rep Power: 31	Re: payroll taxes why not just get a payroll company that does it all for you! i used to do this in my other business and they only charged me $25 per check and i got paid bi-weekly! they did everthing taxes and all check came in the mail __________________ someone PM me when a good tanning topic is posted. :lol:

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