What do you need to do to get started using a payroll service?
First, the timing. It does not have to be the first of the year to start a payroll service. It is easier for the payroll service to be sure but as long as the service gets good Year-To-Date numbers, it can work with that. The new service will need to be able to do the W-2’s. If not the first of the year, the first of a new quarter is best. (April 1st, July 1st, or October 1st)
We will need new W-4’s for all the employees. Good time to update them anyway.
We will need the pay rates, and all the little details on employee’s pay and deductions.
It’s nice to shadow a couple of payrolls to compare the new setup with how the existing payroll is calculated to make sure no detail is missed before switching over.
We need information on electronic tax payments, the passwords used so we can begin making tax payments.
Company EIN number.
State Unemployment Rate information.
Local Tax information.
Voided checks for the company account from which the payroll will be drawn as well as employees getting direct deposit if offered.
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