Okay, before we get to discussing the nitty gritty of setting up a payroll, we’d like to congratulate you for starting your business. You absolutely rock. You’re a champ. And we want to wish you all the best for your future.
Since, you’re here, we assume you already have got few employees on your book. That means, you already have an EIN and your business is registered with your local (or state) government.
Do you have an EIN? No?
Well, then you must get it today—now!
You can apply for an EIN online by clicking here.
Note: Employers can hire employees“unofficially” without an EIN. To make the hirings official, file taxes and process payroll, a business must have an EIN.
The first step in setting up a payroll for your startup is completing the required paperwork.
Proceed by asking your employeesto fill out the I-9 form. Each employee must fill out their own I-9 form.You must retain this form for a minimum of three years with you.
Note: You must classify your employees correctly when implementing the above forms. If you’re confused between the term “independent contractor” and “part-time or full-time employee”, and can’t decide the classification status of your employee, consult the IRS for help by filling out form SS-8.
Define a Pay Period
Next, you need to choose a pay period for your business. Some states have set out laws for payroll frequency, so always check if you have any constraints limiting you on when you can run a payroll.
If your state hasn’t defined any laws on payroll frequency, then choose a pay period based on:
- The preference of your employees;
- The cashflow dynamics of your business; and
- The availability of accounting logistics
Pick a processing system
You can either choose to process the payroll in-house or outsource the operation to a payroll company.
While processing payroll in-house can save you money, hiring a payroll company to do the job can save you time and help you avoid processing errors that can potentially result in hefty fines.
With that, you’re good to go; your payroll system is now live.
About A&B Accounting and Business Solutions
A&B Accounting and Business Solutions provides bookkeeping, accounting, business consultation, payroll services and tax related services to small and medium sized businesses in Deerfield, FL. The company employs an experienced team of professionals to ensure delivery of high quality services to its clients. If you are looking for experienced payroll service providers in Boca Raton FL, please call 954-596-9966, or email at firstname.lastname@example.org.