Whether you're a new business owner who doesn't want to handle payroll processing on your own or you're a long-time business owner who simply needs to switch to a new service, the process can be a little bit unnerving to say the least. This is particularly true for start-ups who have no idea what type of information they need to do payroll or what the payroll service will need from them. If you are switching payroll services for the first time, you may not know what a new payroll service would need from you. Below is a breakdown of what a new business owner and an existing business owner needs to have prepared for a new payroll service:
If you're a brand new business, you probably haven't registered with the Internal Revenue Service (IRS) just yet. In other words, this means that you have not successfully applied for and received a Federal Employer Identification Number (EIN). Luckily, it is an easy process to get an EIN. You can do this on your own by visiting the IRS website or you can have the payroll service guide you in the right direction. A state identification number may also be required if you live in a state that has income tax. Currently, there are seven states that do not require income tax be paid, including Florida and Texas.
If you've been in business for a little while, then you probably have registered with the IRS and already have your EIN. This number will be necessary for your new payroll service. If you don't know it off the top of your head, you can find in on any of your latest IRS documents, such as a letter from the IRS or a previously-filed tax return. Along with your EIN, you will also need your state identification number if applicable. This also can be found on previous tax notices or letters.
Any Type of Business
Whether you are a start-up or a business that has been operating for a decade, you'll need to make sure that you have all of your bank account information ready. This includes both the account and routing numbers. In addition, you'll need to have employee information prepared. You will need each employee's name, address, birth date, Social Security number, hire date, status, deductions and pay amount. Don't forget to also take a copy of their direct deposit information and W-4 forms (for marital status, allowances, etc.). For assistance, talk to an accountant like Teri J Henderson, CPA, P.A.Share