Regardless of whether your first payroll involves a few employees or many, the goal is to execute payroll in an accurate and compliant manner. Here are some steps to help you manage your first payroll.
Get an EIN and perform the necessary state registrations. Obtain an Employer Identification Number from the Internal Revenue Service. If required, register with the state department of revenue for employee tax-withholding purposes and with the state department of labor for state unemployment tax purposes.
Select a payroll system.You can do all of your payroll in-house using your own resources, outsource your entire payroll to a service provider, or do some payroll tasks in-house and outsource the rest. Before you decide, research the pros and cons of each system.
Conduct employee verifications and classifications.This includes:
Best practice advice
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