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“SurePayroll is easy, affordable, and it saves me time and headaches. I don’t have to figure out how to do payroll and taxes because SurePayroll does it for me.”
Payroll forms are documents used to manage employee pay, including tracking hours, calculating wages, and documenting deductions like taxes, retirement contributions, and health insurance.
Managing forms may not be the most glamorous part of running a small business, but payroll forms offer real benefits. They can help you make timely, accurate payments, meet legal and tax obligations, and gather information for reporting.
Generally, small business owners use payroll forms to:
Payroll forms fall into two categories.
Employee payroll forms, which are completed by employees and can help you calculate things like accurate withholding or set up direct deposit.
The employer submits employer tax forms to report wages and taxes to agencies like the Internal Revenue Service (IRS). Keep in mind that federal and state agencies set strict deadlines for submitting your employer tax forms. Meeting them is critical to avoid penalties.
It’s easy to get confused about the difference between payroll forms and tax forms, especially since many payroll forms are used to calculate, report, and remit taxes.
Payroll forms refer to the documents employers and employees use to manage and process pay. These include forms for collecting tax withholding information, summarizing wages, and maintaining payroll records. Examples include:
Tax forms, on the other hand, are a specific type of payroll form submitted to tax agencies to report wages paid and taxes owed or withheld. These forms are part of your federal and state tax filing responsibilities. Examples include:
Put simply, all payroll-related tax forms are payroll forms, but not all payroll forms are tax forms. Some are used internally or collected from employees for recordkeeping and compliance, rather than submitted to a tax or government agency.
Let’s take a closer look at the payroll tax forms you'll be handling as an employer.
Form W-2 is an IRS-required document that summarizes each employee’s total wages, tips, and other compensation for the year. It also includes the federal income tax withheld, as well as state and local income taxes withheld. It also includes Social Security and Medicare taxes and wages. Additional information, such as retirement plan contributions and employer-provided health insurance benefits, may also be reported.
As an employer, you're required to:
Form W-3 acts as a cover sheet for your W-2 forms when you submit them to the SSA. It provides a combined summary of key payroll details across all employees, including total earnings, Social Security and Medicare wages, state wages, and tax withholdings.
You'll need to file your W-3 along with your W-2s by January 31.
Form 940 is used by employers to report and pay annual federal unemployment taxes under the Federal Unemployment Tax Act (FUTA). These taxes help fund unemployment compensation for workers who lose their jobs.
Most employers are required to pay FUTA taxes either quarterly or annually. In many cases, you’ll also need to pay a state unemployment tax (SUI) in addition to your federal obligation.
The deadline to file Form 940 with the IRS is January 31.
Form 1099-NEC, Nonemployee Compensation, is used to report nonemployee compensation to the IRS.
If you pay a nonemployee $600 or more in 2025, or $2,000 or more in 2026, you’re required to report that income to the IRS, and applicable state and local agencies, by January 31, using this form.
Copies of the 1099-NEC must also be provided to the payee by January 31.
If you’re submitting 1099 forms by mail instead of electronically, you’ll also need to include Form 1096, Annual Summary and Transmittal of U.S. Information Returns. This form acts as a summary or transmittal sheet for paper-filed information returns, such as Form 1099-NEC.
The deadline to file Form 1096 with the IRS is January 31.
You can’t file accurate payroll forms without the right paperwork. That’s why it’s important to collect a few key forms early on. Even though they aren’t filed at the end of the year, they’re necessary to keep your payroll on track.
Form W-4 is an IRS document that employees complete so employers can determine how much federal income tax to withhold from their paychecks.
You should collect a new W-4 when an employee is hired. It’s also a good idea to remind employees to fill out a new W-4 when their tax situation changes.
While not a payroll form, Form I-9 is a required employment document that every employer must complete for new hires. It verifies the employee’s identity and that the employee is legally authorized to work in the United States. The form needs to be completed by both the employer and the employee.
By law, you must have a completed Form I-9 on file within three business days of an employee’s start date.
In addition to the federal Form W-4, many states require specific employee withholding certificates to determine how much state income tax to withhold. Common examples include California’s DE-4 and New York’s IT-2104.
Be sure to check with your state’s tax agency to confirm which forms are required for your employees.
Our free paycheck calculators can help estimate take-home pay and paychecks by state.
The types of forms you'll need to collect or complete can vary depending on where an employee is in their employment journey. Here’s a quick breakdown of some of the forms you may need to collect or complete to help you stay organized at every stage.
When bringing a new employee on board, you’ll typically need to collect:
In addition to gathering employee payroll forms, you'll need to retain a completed Form I-9 for employment eligibility verification.
For your current team, maintaining accurate and up-to-date records is key. You may need to:
When an employee leaves your company, be sure to:
While federal forms are standard across the U.S., each state sets its specific payroll requirements. To stay compliant, you’ll need to understand the rules that apply to your business location, as well as any states where your employees live or work remotely.
Depending on your state, you may be required to:
Some states also require annual reconciliation forms or enforce different retention timelines for payroll records.
The U.S. Small Business Administration offers a helpful resource for checking your state’s tax obligations.
Staying ahead of deadlines is one of the best ways to avoid penalties and reduce year-end stress. These tips can help you stay organized and confident heading into the 2026 tax season:
Handling forms for payroll may not always be simple, but it’s a key part of staying compliant and taking care of your employees. By keeping up with federal and state requirements, you’re setting your business up for long-term success.
And you don’t have to do it all on your own. SurePayroll can help you manage deadlines, file forms accurately, and stay organized.
This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up to date
