wherever and whenever possible. You should decide if you want to expose yourself to penalties, learn the complicated and changing regulations or use a professional organization to assist in payroll preparation. If you have employees you should also have workers compensation insurance and one of the benefits of using a payroll service is that they can also include your workers compensation insurance in their calculations. This avoids having to go through a year end insurance audit, the nature of which scares many owners.
Using a payroll service will allow you to spend your time promoting your Laundromat and not dealing with regulations and compliance with the IRS and the State. There are several large companies and many smaller payroll companies that can assist in helping make payroll easy for a Laundromat owner at reasonable rates and that provide various programs. You want payroll to be easy and intuitive, so choosing the right payroll service for your company is important.
EMPLOYEE OR INDEPENDANT CONTRACTOR?
USING INDEPENDENT CONTRACTORS
The majority of Laundromat owners in Southern California hire their cleaning help and repair personnel as independent contractors. The workers are paid in cash or check and given a 1099 form at the end of the year. Some of these workers don't even want a 1099. If you elect to classify your workers as independent contractors, it is recommended that an agreement formalizing the relationship as an independent contractor be signed by both parties and you issue a 1099. Here is a sample Agreement which should be reviewed by your own attorney before using:
The practice of claiming cleaning and repair workers as independent contractors is a result of a couple of reasons but one certainly is that new owners of Laundromats want to avoid the maize of forms and formulas associated with payroll.
USING A PAYROLL SERVICE