Preparing For Payroll When You Have Employees

For business owners that haven’t yet set up a payroll system, it can seem complicated and time-consuming, but it is an essential part of running a successful business. With the right setup, a payroll system can meet all of your needs while supporting your employees. If you run a business and you are the only employee, click here to learn more about putting yourself on payroll. 

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Here is a list of important numbers and documents you will need BEFORE you set up a payroll system.

1. Employer Identification Number - Also known as a Federal Tax Identification Number or EIN. If you don’t have this, you can apply for one here. 
2. State and local tax ID numbers
3. State unemployment ID number  
4. I-9 and W-4 forms for your employees - When you hire a new employee, make sure they complete both a 1-9 and a W-4 form. You need these forms whether the employee is a contractor, part-time, or a full-time employee
5. Employee’s state withholding allowance certificate
6. Department of Labor records

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Here are a few decisions you will need to make:

1. Define your pay periods - How often will you be paying your employees?
2. Define your salary amounts - How much will you be paying your employees? 
3. Budget - How much money do you have set aside for running a payroll system?

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Setting up payroll can seem like a complicated process, but once you’ve set up a system that works for your business, you won’t have to repeat the process and it is quite easy to add new employees. 

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‍Ready for the next steps? 

Up next, find a payroll provider that works for your business.

If you don’t have access to everything listed above, don’t stress. Service providers like ADP can help get your business set up for success. To learn more about how ADP can help your business send us an email at info@axishelps.org and we will connect you with our local service rep. You will receive a FREE consultation to discuss your business needs and 20% off whatever package you decide is the best fit for your business. 

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Related Links:

• ‍Why You Need to Put Yourself on Payroll as a Small Business Owner‍
• What is a Payroll Provider and Why Might Your Small Business Need One?