Learn how to set up and run your payroll.
Running payroll for the first time can be a bit scary, and keeping up with Federal and State regulations changes can be overwhelming. First step is to learn what information is needed to set up Payroll and what to collect from employees and tax department. This article will assist with the proper steps on how to set up your payroll and how to run your payroll.
Additional Human Resources Items to Have On Your Radar
You will need to register and gather some information in order successfully set up your payroll. It’s always important to also have your HR in place, employee application, employee hand book, job description and responsibilities to mention a few. Today we will focus on the basics of what you need to set up your company’s payroll.
Collecting important Payroll Data
Federal Tax ID number
• Apply for your Federal Employer Identification number (FEIN) • You can simply apply for your FEIN on line thru https://sa.www4.irs.gov/modiein/individual/index.jsp • Your FEIN number is needed to file your Employees Federal W/H, Social Security and Medicare and Employers Federal W/H, Social Security and Medicare and Futa.
• Nevada Unemployment Insurance • Nevada Modified Bond Factor • Apply online thru http://ui.nv.gov/ess.html • These are both Employer taxes.
Additional Payroll Data
Payroll Business bank account
• This form is used for Employee verification in the US
• Employees need to fill out this form in order to provide their demographics, this is their legal name, address, marital status SS# and allowances or dependents.
New Hire Report
• Nevada employers need to report new hires to the state within 20 days of hire dates.
Minimum Wage and Workers’ Comp Insurance
Meet Minimum Wage
• Nevada employees with benefits rate is $7.25 per hour and $8.25 per hour if not insured.
Workers’ Compensation Ins
• You are required to have Workers Comp ins for your employees. In the event that your employees are injured on the job, workers’ comp ins can help alleviate medical bills.
Food for Thought
List some experiences positive or negative you’ve had with your Payroll.
- Any tax issues?
- Employees collecting unemployment?
- Not knowing where to send your I-9s and the state new hire reporting?
- Workers comp audits or surprises?
- For existing companies with payroll, please review you 941 quarterly reports. Often times you will find that your CPA or payroll company are missing Tax Id numbers, this can result in hefty fines plus interest.
- Another way you can find out if you are missing information is thru your bank account. If your payroll provider is missing information they will assess a monthly penalty fee of approximately $50 or $60 a month.
- For audit purposes, make sure that you have a file with your W-4, I-9 reports and state new hire reporting. Often times providers will neglect to comply and report or provide you with proof.
- Employee demographics match your employees W4
- Posters are up to date
- State unemployment rate are matching your QTR returns.