So you’re starting a new payroll service. That can seem daunting at first. You may be asking yourself if it will work out and how to organize your payroll documents. Bottom line, you need to be prepared.
If you’ve never run payroll before, enrollment with your new service will be easier because you won’t need to provide any history.
Each payroll service is different, but there are certain basic laws that each state follows (like EIN numbers) that will help you enroll. Payroll doesn’t have to be challenging to set up.
If you are a new business:
- If you are a new business, you must first register with the IRS to get your Federal Identification Number (EIN). It’s free and automatic. Visit www.irs.gov. For existing businesses, move to step 2.
- New businesses must register with your state for income tax and employment insurance. (AK, FL, NH, NV, SD, TN, TX, WA and WY do not have income tax.) Existing businesses must find their number and the state’s unemployment rate from a letter, notice or previous tax filing.
- Have an account number and routing number ready from your company bank.
- If you have employees, you’ll need the following information:
a. Personal information: name, address, Social Security number and email
b. Pay information: birth date, hire date, status type, pay amount and deductions
c. Marital status and allowances from W4 form
d. Direct deposit information (if applicable)
Want more tips?
There’s always advice to be had at Beaton Accounting. Our experts are here, ready to answer your questions at a moment’s notice. For a FREE tax consultation, call today! (631) 921-6894.
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