I got my first Labor and Indistries bill from the state, for the last two quarters. When I got a bill for about $600, I just figured that must be normal. I mean I've never had employees before this, so how would I know otherise. But it turns out the reason I owe so much money, is because my payroll service reported to the state that each of my employees worked 780 hours per quarter. Since most of my employees work for me 2 to 4 hours a week (teaching 1 or 2 classes per week), there's no way that adds up to 780 hours per quarter.
Way to go SurePayroll.com. Way to make me pay hundreds of dollars I don't owe.
My bookkeeper is trying to straighten this all out with the state now. I won't have to pay it once she does, but I'll still have to pay her for straightening it out.