If you have an EMPLOYEE then you need to compute the paycheck correctly and withhold the appropriate taxes and file the required payroll tax returns EVEN IF you simply write them a check for the net pay after withholdings. A print out of the calculations (and the YTD totals) should also be made available to the employee even if only by email. Quickbooks has an employee payroll section that works very well. The option to use a separate payroll company is up to you.
