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are withheld for state income taxes, federal income taxes, Social Security and Medicare. You might also have a You had an idea for a business; you pushed forward, and now you’re retirement plan or employee benefits taken out of a paycheck. Deducting 100% committed. Running your these from the employee’s paycheck own business can be very different is your responsibility, the employer. than what you had imagined. It If you haven’t started keeping quickly turns into several different jobs. Once you own a business, you detailed records yet, now would be a great time to start. become responsible for everything. Hopefully, it becomes successful, First, you want to have your and you will to need to hire an employee to help you expand. When employee(s) fill out a Form W-4. Situations are always changing, and this happens, that means you are it is a good idea to have this formed going to have to figure out to how filled out each year. This form is a to do payroll. It isn’t as easy as just roadmap that will help you figure writing a check, because a lot is involved with payroll. These are the out the amounts that you will need to withhold from each paycheck. Form nuts and bolts of payroll. W-4 is involved and is going to All of us (except maybe a first-time finish with the amount needed to be worker) realize that we don’t get all withheld from every paycheck. It is very important to take the time to fill wages earned in our check. Monies By Jason Arsenault
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this out correctly. An incorrect Form W-4 could result in having a surprise tax burden at the end of the year, or that you were giving away too much money during the year that could have been used towards expenses or savings. Next, you will need to figure out how much New Mexico withholding will need to be taken out of each paycheck. You are going to use the number of allowances claimed on the Form W-4 and then use a table the State provides to figure out how much additional monies need to be withheld. You are going to need to decide how often your employee is going to receive a paycheck. Is this going to be weekly, bi-weekly, or monthly. Also, are you paying your employee an hourly wage or salary. If you hired an employee expecting
