One part-time employee; payroll software or service?
 

My consulting business has reached the point where I need part-time help and I’m going to hire my son. I expect him to work for me for at least two years and there is a possibility the company I consult for will absorb him as he proves himself.

I’ve reviewed software and services for payroll online and would appreciate any input you employers can provide to best use my time and money to process all payroll requirements (including state of California).

Any recommendations? Thanks in advance.

Make him a subcontractor.

Is he your only employee? Then yes, dad is right and hire him as a contractor and give him a 1099.

Quickbooks. Though that damned company is ruining what WAS a nice simple software package.

FYI ADP is by far the worst company i have dealt with in my time as a CPA.

Regarding the 7.65% either you pay it (employee) or he pays it (subcontractor). In both cases he pays the other half (7.65% again).

If you are already using Quickbooks go that route. We used WellsFargo bank to do our payroll while we were in California.

QuickBooks makes it simple. It updates the tax tables regularly. It is easy to use.

If you only have one employee and don't want to buy/learn Quickbooks, there are several free online payroll tax calculators. Here is one: Free Payroll Tax Calculator - Free Paycheck Calculation

My wife has one employee and uses ADP, which works out fine.

Good idea to read this over:

Independent contractors