Hiring your first employee is a big step. Before the first payday, make sure you have the basics in place.

Set up your accounts

• Get an Employer Identification Number (EIN) from the IRS
• Register for Florida reemployment tax
• Set up a way to make federal tax deposits online

Collect the right forms

• Form W-4 for federal withholding
• Form I-9 to verify eligibility to work
• Report the new hire to the state

Run payroll correctly

You will generally need to withhold federal income tax, Social Security and Medicare from your employee's pay, and pay the employer's share of Social Security and Medicare. You may also owe federal unemployment tax.

Know your deadlines

• Federal tax deposits, often monthly or semiweekly
• Form 941, usually filed quarterly
• Form 940, usually filed annually
• Forms W-2, furnished to employees and filed each year
• Florida reemployment tax reports

Keep records

Keep your payroll records, time records and tax filings. Employment tax records generally should be kept for at least four years.

Consider getting help

A payroll service can help, but you as the employer generally remain responsible, so check that the payments are actually being made.

Have questions about your situation? Tax rules change and every situation is different, so please talk with a professional before acting on general information. Call Fajardo & Associates at 407-720-7220 to make an appointment.