5 Tips for Setting Up Payroll for Your New Company

Paying attention to these details may make or break your new biz during startup.

If you’re working to get a new business off of the ground, you probably know that there are a lot of details to deal with. One of the most important is payroll. Do you know how to set up payroll for a company? If you do not, there is no time like the present than to learn.

Companies need hired help. Hiring employees can be time consuming yet exciting. Some small businesses handle payroll entirely on their own, while others reach out to a human resources professional to ensure they are on the right track or to handle all payroll matters for them. Regardless of which avenue you choose, here are five tips for getting your payroll started:

You must request an employer identification number. This is best done by contacting the IRS directly. This number will be used over and over again, including during the payroll setup process.

Check local and state laws. Are there requirements by your local and/or state government to process your taxes, such as a specific ID number? If you are not sure, contact your tax professional for help finding out.

Make sure all employee paperwork is filled out adequately. Whether you are hiring part-time or full-time employees, they need to fill out all income documents and sections, including federal income withholding on form W-4. This will verify that you are withholding the correct amount of federal income tax every pay period.

Choose a pay period: weekly, bi-monthly, monthly, etc. Just be sure to check with local government again to be certain there are not any regulations in this area.

Choose a payroll provider to help streamline the process for you. It may be tempting to do it all on your own, but the assistance a payroll provider will go a long way, not only in ensuring you are doing everything right, but helping you to sleep at night while you rest assured that you are handling your numbers correctly.