Setting up payroll

The setup wizard end to end: workspace, industry, worksites, people, federal and state tax, bank verification, pay calendar, prior wages, and signing.

QuickstartFor Business owners, Bookkeepers, Firm staff

What to have ready

Your federal EIN and the filing form you are assigned — typically 941 quarterly, or 944 if you file annually.
State withholding and unemployment account numbers for every state where someone works.
Your unemployment rate for each state — it changes annually and using last year's is a common error.
The business bank account that will fund payroll, with the ability to verify it.
Every employee's completed W-4, address, pay rate, and start date.
Year-to-date wages and taxes for anyone already paid this year through another system.

The setup path

Setup is a resumable wizard — you can leave and come back, and it remembers where you were.

1
Workspace — the legal name, address, and entity payroll runs under.
2
Industry — used for classification and, in some states, for rate defaults.
3
Worksites — every physical location where someone works.
Worksites drive state and local tax registration. A remote employee's home is a worksite, and it may create a filing obligation in a state you do not otherwise operate in.
4
People — employees, with pay rates, classifications, and W-4 details.
5
Federal tax — EIN, filing form, and deposit schedule.
6
State tax — one entry per state where someone works, with account numbers and rates.
7
Bank — the funding account.
8
Verify bank — confirm the micro-deposits or the instant verification.
Payroll cannot run until the funding account is verified.
9
Calendar — pay frequency, period dates, and check dates.
10
Prior wages — year-to-date figures for anyone already paid this year.
11
Sign — the authorizations that let filings be made on your behalf.
12
Submit — setup is reviewed and the account is activated.

The pay calendar

The calendar defines pay periods, check dates, and the deadline by which a run must be approved for employees to be paid on time. Missing that deadline is the most common cause of a late payroll, and it is entirely avoidable.

Frequency	Runs per year	Notes
Weekly	52	Common in trades and hourly work. Most administrative overhead.
Bi-weekly	26	Two months a year have three pay dates — budget for it.
Semi-monthly	24	Fixed dates. Simpler for salaried staff, awkward for hourly overtime periods.
Monthly	12	Lowest overhead. Not permitted for some employee classes in some states.

Common questions

Can I run payroll before setup is complete?

No. Tax registration and bank verification must be finished first, because a run that cannot deposit taxes creates a liability with a penalty attached.

An employee moved to another state.

Add their new location as a worksite and register in that state before their next payroll. Working in a state you are not registered in creates a filing obligation you are already late on.

How long does activation take?

Bank verification is usually the longest step, and state registrations can take longer if you are registering for the first time. Start at least two weeks before your first intended pay date.

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