Payroll & Taxes
- Your Role As An Employer
What It Means
To Employ Staff
At Old State Staffing, we manage every step of the pre-employment process—from job descriptions, interview guides, candidate profiles, employment agreements, negotiating terms and more.
Once you’re ready to welcome staff into your family office, you’ll also be stepping into the role of an employer. While managing payroll and taxes for an employee might seem complicated, with the right guidance, it can be an affordable, automated, and stress-free process. We’ll help you lay a strong foundation from the start, and connect you with trusted partners who can pick up right where we leave off.
- What You Need To Know
Employer Responsibilities
Employing family office staff brings many benefits, but it also comes with important responsibilities. Properly managing payroll, taxes, and/or benefits properly protects your assets, supports your employees, and prevents potential legal issues down the road. Whether you are staffing your first hires or expanding an existing office, Old State Staffing is here to guide you at every stage.
Payroll
Paying staff “on the books” is the best way to maintain a professional, transparent relationship. Proper payroll practices enable employees to verify their income, qualify for housing and loans, and establish a clear financial record for both parties.
Many families choose a payroll service specifically designed for family offices, handling everything from direct deposits and overtime tracking to year-end W-2s. Even if you have been paying informally, transitioning to formal payroll is easier than most people expect, and we’re happy to recommend trusted providers to make things seamless.
Taxes
Family offices are responsible for key tax obligations, including:
- Withholding Social Security and Medicare (FICA)
- Paying federal and state unemployment taxes (FUTA/SUTA)
- Filing quarterly and year-end employment tax reports
- Issuing W-2 forms at year-end
While it’s possible to manage taxes independently, most family offices prefer to partner with a payroll service that simplifies the process through a secure, user-friendly portal.
Workers Compensation
Many states, including Washington D.C., Maryland, and Virginia (only if >3 employees), require family office employers to carry workers’ compensation insurance. Workers’ comp provides coverage for job-related injuries, protecting both you and your employee from costly medical bills or lawsuits, and premiums are generally based on the percentage of the employee’s wages.
Generally, carriers quote a rate per $100 of payroll. For example, if the rate is $0.75 per $100, and you pay a worker $50,000/year, your premium would be $375 .
Benefits
Offering benefits is typically not required, but it can be a powerful tool to attract and retain top talent. Popular options include health insurance contributions and retirement savings plans (like SIMPLE IRAs or Simple 401(k)s). Providing benefits shows a commitment to your employee’s long-term well-being and can significantly improve retention, especially in today’s competitive private staffing market.
For a closer look at industry standard benefits, visit family office positions and select a position you would like to learn more about.
- Let's Make It Easy
Payroll & Taxes Made Simple
Managing your staff’s payroll and taxes is important — but it should never feel overwhelming. That’s why Old State Staffing partners with GTM Payroll Services, the nation’s leading provider in family office payroll, insurance, and benefits administration. With certified payroll professionals, licensed insurance brokers, tax specialists, human resource experts, and CPAs, all in a secure, easy-to-use platform, GTM is a one stop shop for family offices.
We’ll introduce you to our dedicated payroll specialist, where you’ll receive a complimentary consultation as well as free account setup. You’ll have access to curated resources covering everything from offering healthcare stipends to maximizing tax savings, so that you know that you employing others with total confidence.
- FAQ: Employers
Frequently Asked Questions
Can Old State Staffing handle payroll/taxes for my employee?
We are a referral agency—our role is to source, vet, and present qualified candidates to you and offer guidance throughout the hiring process. We do not provide payroll or tax filing services directly, however, we have deep experience with family office operations and can introduce you to our dedicated representative at GTM Payroll Services. GTM is the nation’s leading provider in family office payroll, insurance and benefits administration.
We’ll introduce you to our dedicated payroll specialist, where you’ll receive a complimentary consultation as well as free account setup. You’ll have access to curated resources covering everything from offering healthcare stipends to maximizing tax savings, so that you know that you employing others with total confidence.
Should my family office staff be employees or 1099 contractors?
In most cases, family office staff are classified as W-2 employees. These roles tend to be long-term, closely managed, and integral to the operations of the family office, which typically meets the IRS definition of an employer-employee relationship.
Independent contractor classification may be appropriate for project-based consultants or firms providing external services. However, misclassification can create tax exposure and liability. We’ll help you clarify each role’s classification and connect you with legal or tax counsel if needed.
What benefits should I offer for my position?
Yes, though structure matters. Performance-based bonuses and long-term incentive plans can help attract and retain top-tier professionals in competitive roles like investment, accounting, or legal counsel. Some families also offer “phantom equity” or profit-sharing models tied to portfolio performance, without giving up actual ownership.
These arrangements should be carefully designed in partnership with legal and financial advisors to ensure compliance and alignment with your goals. We’ve seen a wide range of models and can help you think through compensation that supports both loyalty and performance.
Can I offer equity or performance bonuses to my family office team?
Benefits can vary by position, hours, and your budget. We encourage you to visit our Positions page for guidance on industry-standard compensation and benefits for each role.
If you’d like help navigating healthcare, retirement savings, or other benefits for household employees, your placement specialist will walk you through these details during your consultation.
Should family office staff be employed through a separate legal entity?
Most families choose to create a dedicated LLC or S-corp for staffing and payroll purposes. This can offer liability protection, streamline accounting, and make it easier to manage tax filings, benefits, and compliance.
Are there tax advantages to employing staff through a family office?
Possibly. Structuring your team under a family office entity can create opportunities for tax efficiency, particularly when staff support investment or business functions, rather than purely personal services. Compensation tied to investment management, for example, may be deductible as a business expense.
That said, personal/household services—like housekeeping or childcare—are generally considered non-deductible, even if paid through the same entity. It’s important to consult with your tax advisor to determine which roles may qualify, and how to structure employment in a way that aligns with IRS guidelines.
How do I retain key employees in a discreet, private environment?
Retention often hinges on trust, compensation, and long-term alignment. In a discreet family office setting, staff may appreciate increased autonomy, direct access to principals, and meaningful, stable work. Retention strategies may include annual reviews, structured bonuses, milestone rewards, or clear growth pathways within the organization.
We’ll help you identify what motivates your ideal candidate and ensure those values are reflected in your offer, onboarding, and long-term strategy.
