Required Company Documents To Start Payroll In the US

Setting up payroll in the United States requires specific documents to ensure compliance with federal and state regulations. This guide outlines the essential and optional documents needed to get your payroll up and running smoothly.

Mandatory Items

1. Form 941 (Quarterly Return):
   For most employers, filing Form 941 is a mandatory requirement. This form reports the employer’s tax liability for Social Security, Medicare, and federal income taxes on a quarterly basis. Employers with an annual liability of $1,000 or more for these taxes are generally required to file Form 941. To determine if Form 941 or Form 944 applies to your business, the IRS (Internal Revenue Service) assesses your reported tax liability. Read more about Form 941 on the official website.

2. CP-575 (FEIN Certificate):
   The CP-575 is an official letter from the IRS that confirms your unique Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN). To obtain this number, you’ll need to complete Form SS-4, which can be submitted online, by mail, fax, or in person. Learn more about the CP-575 and how to apply on the IRS website.

3. DE 9 (For California Businesses Only):
   California employers must file the DE 9 form, a quarterly report used to reconcile wages paid and payroll taxes withheld. This form, which includes details like the employer’s FEIN, total wages, and state payroll taxes withheld, is essential for complying with California payroll tax regulations. Access more information and view a sample form on the official website.

Optional Items

1. Benefits Statement(s):
   Providing a summary of the benefits offered to employees can be useful for both payroll processing and employee records.

2. Company Policies:
   Uploading company policies ensures that they are easily accessible for reference during payroll processing.

3. Payroll Journal:
   A payroll journal is a detailed record of all payroll transactions and can serve as an important reference for audits or reviews.

4. Form 944 (Annual Return):
   Form 944 is an alternative to Form 941, designed for small employers with an annual tax liability of $1,000 or less. Before using Form 944, employers must receive IRS approval. This form simplifies the reporting process by consolidating it into an annual return. Find more information about Form 944 on the IRS website.

5. State-Specific Forms (SS-4):
   While the SS-4 is the standard application for an EIN, some states require additional forms for tax withholding purposes. These state-specific forms are critical for ensuring compliance with state tax regulations. Learn more about state-specific forms on the official website.

6. Form 8655 & Passport:
   For legal representatives who are non-US residents and lack a Social Security Number, a signed Form 8655 and a copy of their passport are required for payroll setup. Read more about Form 8655 on the official website.

Customers with Year-To-Date Data

1. Employee Payslips:
   Collecting payslips from the start of the tax year helps ensure accurate payroll records and tax reporting.

2. Employee W-2 Forms:
   W-2 forms summarize an employee’s total earnings and tax withholdings for the year. These forms are essential for both payroll processing and employee tax filing.

By gathering the necessary documents and understanding their importance, you can streamline your payroll setup and stay compliant. Make sure to visit the provided links for more detailed information on each form and requirement.

If you need further assistance or have questions about the documentation process, our team is here to help you every step of the way!

See also: What employee information do I need to share during the implementation process with Remote Payroll in the US?