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 have your accountant 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):
Date of birth
Social security number
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).