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Payroll Setup Checklist: Document Requirements

New Employer and HR Resource

Launch payroll correctly with our setup checklist. For new employers, HR, bookkeepers, and CPAs. Gather EINs, state tax IDs, employee Forms W-4 and I-9, direct deposit authorizations, and workers’ compensation details so the first payday runs cleanly and Forms 941/W-2 stay accurate. Confirm state registration requirements. Not legal or tax advice.

Payroll Setup Checklist: Document Requirements form template preview

Key Benefits

Register for federal and state employer accounts
Collect W-4 and I-9 before work begins
Set up direct deposit and pay schedules
Enroll in workers’ compensation when required
Choose a payroll system or provider
Avoid first-payroll compliance mistakes

Common Use Cases

Startups hiring their first employeesS corps setting up owner payrollCompanies moving from contractor-only to employeesHR onboarding a new legal entity’s payrollBookkeepers implementing payroll for clientsMulti-state employers adding a new state

Frequently Asked Questions

What federal accounts do I need?
You need an Employer Identification Number (EIN) and generally an EFTPS enrollment to deposit federal employment taxes. You will file Forms 941 (or 944) and annual Forms 940 and W-2/W-3.
What state registrations are required?
Most states require employer withholding and unemployment (SUTA) accounts before you pay employees. Some cities have local taxes. Register before the first payday.
Which employee forms are mandatory?
Form I-9 for employment eligibility and Form W-4 for federal withholding are standard. State withholding forms may also be required. Keep them in secure personnel files.
Can owners be on payroll?
S corporation shareholder-employees who provide services generally should receive reasonable W-2 wages. Sole proprietors typically take owner draws, not W-2 wages. Confirm with your CPA.

Checklist

Registrations

Federal EIN confirmation letter (Form SS-4)
Required

Required before EFTPS and most payroll systems.

State withholding and unemployment (SUTA) account numbers
Required

Register in each state where you have employees.

EFTPS (or approved) enrollment for federal tax deposits
Required

Allow time for enrollment before the first deposit is due.

Employees

Form W-4 (and state withholding form) for each employee
Required

Collect before or on the first day of work.

Form I-9 completed within required deadlines
Required

Section 1 by day one; Section 2 within three business days.

Pay

Direct deposit authorization and voided check / bank letter

Preferred for most employers; keep banking data secure.

Insurance

Workers’ compensation policy or exemption documentation
Required

Requirements vary by state and entity type.

Systems

Payroll system or provider configured with rates and pay calendar
Required

Enter earnings codes, deductions, and filing settings before go-live.