5 Step Payroll Quickstart Guide

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:

  1. 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.
  2. 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!
  3. Decide on a pay period. Weekly, biweekly, or monthly? In some states, you can set it yourself, in others you must follow legal requirements.
  4. 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.
  5. 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!