April 24, 2021
Ready, Set, Payroll:
Setting Up Your Team in your Payroll system
Setting up your team for payroll can seem overwhelming, complex, and enough of a stressor to make you put it off for even longer. Not paying your people can be more than just a sidenote, or another thing to push off to next month. This list will make things a little more clear and understandable.
I love Gusto because it makes things easy for busy entrepreneurs. It will help you stay in compliance in the basic payroll tasks.
The basic information that you need to enroll your employee in payroll is:
Legal Name: Employees will need to provide a legal name that matches their documentation for their other employment forms.
Social Security Number: You are responsible for keeping this information secure. Make sure you have an appropriate method of collection and storage.
Home Address: You will need their home address so your payroll company knows
Date of Birth: you cannot ask for the date of birth in the hiring process, this can be grounds for age discrimination. You can collect this information after a job offer is accepted.
I9 Form: The I9 form confirms the ability of the employee to work in the US according to Federal law. While there are some intricacies to this form, for the sake of keeping things simple, just make sure that your employee is legally allowed to work in the US in the screening process.
W4 Form: This form indicates the responsibility of the employer to withhold accurate taxes. Many payroll systems allow the employee to update this information on their own. You are not allowed to assist the employee in making decisions about their withholdings, and their elections do not affect your tax liability.
State Tax Form: You may need to have your employee fill out an additional tax for depending on the state they are located and working (remote workers in particular)
one more thing
Rate of pay: determine your hires compensation, document the agreement, and ensure you are in compliance when it comes to workers classifications.
Payroll Isn’t SO Bad, Right?
It’s amazing that you have figured out how to hire an employee. So here’s the bad news: as you are growing your business, and have employees in different states and with different responsibilities, you need to make sure you are doing your part for your employees and the financial side of your biz, but also the protection of the longevity of your business and the unpredictability of having a team.
What if you had the people operations you and your team deserve without the price tag of traditional HR? Schedule a free consultation and let’s see if we can help! Small businesses deserve access to HR policies without being forced to conform to the corporate lifestyle.
I’m Kira, your new fave HR lady! You can find me at the intersection of online business and people operations. I took my decade + (aging myself a little bit here) of corporate and small business sales and operations, and my business degree in Organizational management and created you some one of a kind goodies for your online business.
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