The advantages of working with a payroll service come into play most heavily with tax compliance. If you work with a full-service payroll provider like SurePayroll, you won't have to stay on top of changing federal, state and local tax regulations - we'll do that for you.
Before you ever begin paying employees, you'll need to set up your business to meet all the federal, state and local payroll regulations. Below are a few steps you'll need to complete before processing payroll.
Obtain Business Identification Numbers
- Federal Identification Number (FEIN) from the IRS
- State withholding Tax ID number (if applicable)
- State unemployment insurance account number
Collect the Appropriate Forms from Employees
- State withholding tax form (varies by state)
Classify Workers Correctly
Create a Payroll Schedule
Choose payment method
Once you're running payroll, you'll need to do the following to stay in compliance. Please note, these are just some of your responsibilities as an employer.
Deduct the Correct Amount of Funds from Employees' Paychecks
- Federal income tax
- Medicare and Social Security taxes
- State taxes
- Local taxes
- Other deductions, including healthcare, retirement plans, garnishments, etc.
Pay the Right Amount of Employer Taxes
- FICA Match
- State Unemployment Insurance (SUI)
- Federal Unemployment Tax Act (FUTA) taxes
- Other State and Local taxes
Make Regular Federal and State Tax Deposits and Filings
- (Federal) Form 8109 / EFTPS
- (Federal) Form 941
- (Federal) Form 944
- (Federal) Form 940
- State forms will vary
Provide Year-End Documents
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