Checklist for changing payroll processors



Checklist for changing payroll processorsThis is a legacy web site and some information may be out-of-date. For more recent information and postings, seewww.tonynovak.com/cpa.

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Payroll setup made easy

If you are planning to change payroll companies it may help to have a simple checklist of the information required. Today’s modern payroll systems allow you to enter the information online yourself or your accountant can handle the whole process. In either event, there are seven steps involved.

STEP 1: CONFIRM SERVICE AND PRICING

Engagement Letter: Get a clearly worded service agreement in writing that includes responsibilities and pricing.

Pricing: Modern providers typically offer lower pricing and a wider range of services than the past generation of payroll processors and so this often provides motivation for changing providers. Pricing typically starts at $30 per month for the first employee and $5 for additional employees for today’s basic payroll processors. Additional services will raise the price.

STEP 2: ENTER BASIC COMPANY INFORMATION

Company Legal Name and Trade Name (if applicable)

Federal Tax Setup Employer Identification Number (EIN)

Specify Tax Deposit Schedule (Semi-weekly or Monthly)

Specify Employer’s Federal Tax Return (941-Quarterly or 944-Annual)

Company Locations – Mailing Addresses, Phone Numbers, Filing Addresses (if different from Mailing Address), Fax Numbers for each location.

STEP 3: STATE TAX  SETUP

State tax setup varies by state. We will provide a customized State Tax Registrations web page.

STEP 4: BANK SET UP

This step is simple. Only two details are required:

Company bank account number

Company bank routing number

STEP 5: ADD EMPLOYEES

For each employee enter (or allow each employee to enter their own information):

Name

Hire date

Date of birth

Compensation

Home address

Title (optional)

Social security number

Email address

Federal withholding allowance

State withholding allowance

Bank account number

Bank routing number

Federal filing status

State filing status

STEP 6: ADD PREVIOUS PAYROLL INFORMATON

Enter YTD previous paystubs for all employees.

STEP 7: ENTER UNPAID TAXES

Enter unpaid tax liabilities (if any are not being handled by previous payroll provider).

 

YOU ARE FINISHED!

 


Opinions expressed are the solely those of the author and do not represent the position of any other person, company or entity mentioned in the article. Information is from sources believed to be reliable but cannot be guaranteed. Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues or a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. Tony Novak operates as an independent adviser under the trademarks “Freedom Benefits“, “OnlineAdviser” and “OnlineNavigator” but is not a representative, agent, broker, producer or navigator for any securities broker dealer firm, federal or state health insurance marketplace or qualified health plan carrier. He has no financial position in any stocks mentioned. Novak does work as an accountant, agent, adviser, writer, consultant, marketer, reviewer, endorser, producer, lead generator or referrer to other companies including the companies listed in the articles on this web site.

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