Payroll Quickstart Guide for New Businesses
So, you’re opening a business. You chose the brand name, the location, the products & services. You drafted job descriptions & listings. You’ve set up interviews, maybe even chosen a few top candidates to hire. Now what?
Before you open and have your new employees on the clock, you better have a handle on your payroll process, or you’ll find yourself in a bind come payday.
First things first:
- Obtain your Employer Identification Number (EIN), also known as a Tax ID or Form SS-4. You’ll need this for reporting taxes and other documents to the IRS. They even made it a little easier with an online application.
- Do you need a State Income Tax ID? If you’re in Massachusetts, then yes. This isn’t true of all states, so do your research. If not, you have one less step to worry about!
- Decide on a pay period. Weekly, biweekly, or monthly? In some states, you can set it yourself, in others you must follow legal requirements.
- Employee paperwork. All new employees need to fill out Form W-4 so you know how to withhold the correct federal income tax from their pay.
- Choose your payroll system. There’s a few options here. Internal payroll processing, done by you or someone on staff. Online payroll processing, done by entering timesheet data into a form. Outsourcing to an accountant or payroll service, taking all the guesswork and number crunching off your plate.
We know, it’s a lot to think about. Any questions, concerns, or want us to take care of it for you? We’re happy to help!