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[quote=Anonymous][quote=Anonymous]This is way too complicated to tell you in a quick post, OP.  Do your research and consult a professional. [/quote]

It's really not that complicated.

You get an EIN from the feds online  http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-Number-%28EIN%29-Online

You get an employer number from your state (MD online here https://interactive.marylandtaxes.com/webapps/comptrollercra/entrance.asp)

You call your homeowners insurance co and hope they can sell you a workers comp rider/policy.

You file state unemployment quarterly (MD online here https://secure-2.dllr.state.md.us/webtax/welcome.aspx)

You withhold 7.65% of wages, which can be paid, along with your share and the small federal unemployment tax, on schedule H of your federal tax return due next April (although you may need to increase your withholding to cover it).

You pay time and a half for any hours worked over 40 in a week, and pay every week or every other week.

You give your employee a record of the hours worked, wages paid, and taxes withheld each time you pay.

You file online with SSA in January to report the wages paid and print out a W-2 from their website (http://www.ssa.gov/bso/bsowelcome.htm)

Note: Personally I would add that you should look at a withholding table for state and federal income taxes and withhold those taxes (which for the feds can again be paid in April on schedule H and for MD can be paid online quarterly).[/quote]

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