Hello, I would ask my CPAs this question but they charge me just to say "hello". If I hire my first employee as a telemarketer and pay them $300 per week, do I have to take taxes out of their check or how does that work? I know I have to pay taxes on it but I am not sure how it is done. Do I need to just total it up at the end of the year and send the employee a W2 form about their earnings and tax? Any advice would be great and thanks.

If you hire someone as an employee, you are indeed responsible for withholding and paying the employer's portion of taxes, social security, etc. No, you can't wait till the end of the year.

Realizing that your CPAs charge, nonetheless, this is precisely the sort of thing you need done properly so that you don't end up facing fines or worse.

If, instead of hiring the person as an employee, you are able to bring them on as a contractor, things are simpler. But even then, there are rules about how independent contractors have to be in order to not be automatically classified as if they were employees anyway. You can find these on the IRS site; there's a list of maybe a dozen or two rules (for example, how much control you have over determining the hours they work, whether it's on or off site, etc.)

Thanks. Yeah actually it is my dad he wants to work for me now :P

You will still be responsible for withholding and paying taxes.

Hiring a subcontractor are sketchy. Pretty much if you give them day to day direction, they are considered and employee.

You could perhaps run your contractors through a staffing agency. For a percentage, the agency will make the contractors their employees, and therefore not yours.

That would be my recommendation.

Ah great recommendation thanks :D