![]() Is the person an employee or a contractor? When a person is paid on the Form W-2, the employer automatically withholds and pays all of the necessary employee income taxes as required by the IRS. ![]() How do you pay your employees?Īnswering this question is the first step in determining the need for a payroll service. Hiring a payroll service alleviates the need to manage the process and ensures you comply with all laws and avoid possibly harsh penalties and fees. ![]() Failure to do so can incur penalties and fines. Payroll can be complicated, and most business owners lack the time and resources to do it properly.
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