I have a small plumbing service company. It is me, my wife and one other employee. We all get paid by regular paychecks. I even pay myself that way. I made my business so it works that way. I did not want any problems with having to pay federal, state and local taxes at the end of the year. We all have our withholding done from our paychecks. You can see the place I get them done if you click here now. It is easy to do for pretty much anyone. You just give them the info they need, and you get your paystubs for everyone to keep track. It makes it easier at the end of the year for taxes too.
I used to just do the self-employment thing with me working. When I needed some extra help, I would hire a guy as a subcontractor. However, that can get you in trouble if you treat them like an employee at all. My wife would run the office without any pay, and we were losing out on some serious deductions. Once we all became employees, I had no trouble at the end of the year meeting our personal tax obligations for our income. This system works a whole lot better for us. The guy I would hire here and there to handle a few jobs or work with me on one no longer has to pay his own tax on his income as self-employment income. He likes that a lot better too.
We work hard for our money, and I think there are way too many rules and regulations as well as taxes. However, you have to go with the laws until at some point they may be changed. I am for lower taxes on people like us who are just getting by, but that is for another post. Until then, I will provide excellent plumbing services and keep all of our ducks in a row when it comes to withholding.