payroll

[Curtis McMillan]

When you first opened who did you have on payroll. Outside of your distilling staff did you have an accountant, pr, or graphic designer?

[Scott @ Twenty2Vodka]

Just distilling staff. All other "players" (as I called them during startup) were expensed out. Treating these as expenses will save you tax paperwork (if you pass the tax on to them) or the expense of paying taxes on these people.

[Beauport Bob]

Curtis, this is a question for your accountant or lawyer(they will charge you by the hour). Or perhaps attend a local Chamber of Commerce seminar on "Start-ups". (you do not have to be member to attend). I fear you would not get answers from this community. IRS is very very serious on "contractors verses employees". States Dept's of Revenue are also very serious. You hire employees and tell or direct them to do their daily job. You contract trade or professionals to do what they are trained to do. EX: You want a brick wall over there. You contract a mason to do it. You do not train or instruct the mason to do it. They will have insurance and liability coverage on their work. You may have an employee on staff with masonry skills and can get the job done. Good we all do that. But you are not in the masonry business. Usually the transgression, or serious error in judgement, is to treat employees as contractors. Doing so you would be accused of avoiding the expensive payroll taxes, withholdings, compliant benefits, on and on. My answer to you is your own question. Staff is employees. Services is contractors. By the way, hire a payroll service if you have even one employee. You do not want to spend the time each pay period on the subject. Let them carry the burden of compliance. It is a competitive field so shop around. By the way, I assume when you asked about an accountant you meant a CPA. A bookkeepper would be an employee.

[Scott @ Twenty2Vodka]

well put Bob.

[Kristian]

Payroll? Somebody forgot to mention this to me, what is this payroll thing you speak of? I'm just kidding. We used established companies for design, accounting, etc. We are a family business and have yet to take any money out so no payroll as of yet. A word on contract workers, you should not be the only business they provide their particular set of skills for. Meaning true contract labor will have multiple clients.

[daveflintstone]

A bookkeepper would be an employee.

My bookkeeper, like many others, is a contractor not an employee. Plenty of bookkeepers also offer payroll service, and there are online payroll services that are easy to use.