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PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4093
Experience:  35 years tax experience, including four years at a Big 4 firm.
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We have been in business for over 6 years and have an EIN number

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We have been in business for over 6 years and have an EIN number but we have only had contractors (1099's) We have now opened a corporate office where we have 4 employees/W2's (counting myself and my business partner in the 4) To start withholding taxes we have purchased the Intuit Professional but we are needing to know what else we need to do? Do we need to create an account with the Federal, SSI, Medicare etc? Do we need to create an account with the Georgia department of Labor for state taxes? We appreciate the help. (We have an accoutant is rarely available and isnt much help-we are going to need to look for a new one obviously)

PDtax :

Hi from Just Answer. The first thing I would do is insure you can use the same EIN if you are now incorporated. If you indeed incorporated (corporate office), the new corporation should apply for a new EIN with IRS.

PDtax :

Q & A next...

PDtax and other Tax Specialists are ready to help you
As you apply for a new EIN with IRS, they will ask the types of wages you will be paying, number of employees, etc. They will also recommend the 941/944 series, 940, W-2 and W-3 for wage reporting, and ask you to set up electronic depositing of payroll withholdings.

Georgia DOL offers a new employer's handbook, link: http://www.dol.state.ga.us/pdf/forms/dol224.pdf that will explain the state unemployment system, enrollment and compliance. http://www.dol.state.ga.us/pdf/forms/dol1a.pdf is a link to the form used to apply for unemployment coverage.

https://gtc.dor.ga.gov/_/#1 is the link to the Georgia Department of Revenue which will allow you to enroll so you can withhold income taxes from employee wages. Remittance and reporting requirements will be available as you go through the interview process.

You may also need workmen's compensation insurance to cover the risks of employees injuring themselves on the job. Your insurance agent will have more information.

I suggest using a tax pro or payroll service if you are unsure of enrolling yourselves. Missing deadlines, not knowing what/who to pay can be expensive, since errors, even unintentional, come with interest and penalty charges.

Thanks for asking at Just Answer. Please advise if you need additional assistance. Please give positive feedback if I have answered your questions.

Customer: replied 4 years ago.
I apologize but I am a little confused. Why would we need to apply for a new EIN when our business and entity are the same? I also thought that the Workers compensation is for a certain number of employees?
When you said you were using a corporate office, I assumed that meant a new corporation, which would require a new EIN.

If that's not the case, you still need to notify IRS, GA DOL and DOR, and your workmen's compensation insurance agent.

Thanks again from Just Answer.
Customer: replied 4 years ago.
Thank you for that clarification and I apologize I confused you. You have included two links above, those are where we need to go to get set up to have taxes deducted? We use Intuit tax services where we need to enter a GA Id number which we dont have yet.... I understand contacting an insurance agent for the workers compensation insurance however do all of those above include the places we need to contact? DOL, IRS, and DOR?
You want to let IRS know you will be paying wages. Some folks just file the first 941 and wait for the notice, since you have an EIN.

Some do the same thing and just file the first GA unemployment and withholding reports, and let the state send them the application materials. Easier than filing the paperwork and waiting weeks for permission. Sometimes, as "She who would be obeyed" reminds me, it's better to ask forgiveness than seek permission (and wait for it...).

No apology needed. Thanks from Just Answer; please leave positive feedback when you close out your question.