I found out today that payroll services don't cost as much as I thought. I found an online payroll service for about $80 a month. But they also told me how much I have to pay as far as taxes and such. This is what I found out:
State Unemployment: 2%
Social Security 6.2%
Medicare 1.45%
Federal Unemployment .8%
If my math is right, I'll be paying 10.45% of my employees wages. My goal is to pay my instructors $50 per hour (keep in mind most of them will only work about 2 to 4 hours a week). That means I'll have to pay $5.23 per hour to various state and federal agencies. The question is, do I lower their pay to $45 per hour to make up for this or do I just take a loss of $5 for every hour that some one works for me??
