Speaker: What are some other important details to consider when starting a business?
Fred Glave: Well, there are a lot of other details that you have to go through and the following list is not comprehensive, but it will cover off most of the other formalities required in running a business and which are often required by State, Federal or County law. The first is if you are hiring employees, therefore, you must withhold a federal and state tax. This is requirement of law and again, you can find out the necessary information by calling 800-8293676 for the Federal Withholding Tax and if you go to your state government website, you will find similar instructions as to how to withhold and pay a state income tax as well. You will also have to pay what is called FICA tax. You have all seen that I am sure on your paychecks and basically, FICA tax is a tax that covers social security benefits and a smaller percentage for Medicare.
Now these taxes are rendered as a percentage of the income. However, there is a cap on the amount of income that is taxable. Again, the process is fairly straightforward. It is very important that you not neglect this process because the Federal Government takes a dim view if you don't withhold and pay those taxes on at a regular basis. You can consult IRS form 1040 or the Federal Tax Publication 15 to get the details on how you perceive with those withholding taxes. Then of course, since you have paid your employees at the end of the year, you are going to have to file form W2 for each of your employees and send them a copy. Again, you can consult the same Federal Publication 15 in order to get the details of how to do that.
There are several other activities that are necessary particularly when you hire employees. One of course, is unemployment insurance that your state may require to consult your state website to find out how to withhold and pay those premiums and in some states, depending upon the nature of your business you will also have to pay Workmen's Compensation Insurance. Again, go to your state website in order to learn the details of that. Depending upon your business and particularly if you are in a manufacturing business, you may have requirements to meet as outlined by the OSHA regulations, again, go to your state or at least your federal website in order to find out the details or consult a SCORE Counselor who can direct you to the right authorities. Similarly, if you are manufacturing and you are dealing with hazardous substances, you will encounter the need to do the same thing. Find out the rules and regulations and make sure you put in place the proper procedures and protections and safeguards with the state or county or a federal government's require.
Again, just to repeat, when you are dealing with all of these items, it is wise to use a professional counsel and help, legal counsel and in some cases, insurance agents and use ones who are specialized in dealing with small businesses. They are the ones that can give you the best help and lead you through this rather daunting days of regulations and laws that really are not that difficult but to the uninitiated, you simply need to learn and some help of that nature is invaluable.
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