{"id":598857,"date":"2023-01-18T15:52:52","date_gmt":"2023-01-18T21:52:52","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/01\/18\/payroll-compliance-tips-for-the-new-year\/"},"modified":"2023-01-18T15:52:52","modified_gmt":"2023-01-18T21:52:52","slug":"payroll-compliance-tips-for-the-new-year","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/01\/18\/payroll-compliance-tips-for-the-new-year\/","title":{"rendered":"Payroll Compliance Tips for the New Year"},"content":{"rendered":"
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Published: Jan 17, 2023<\/span><\/span>
\nby Nellie Akalp<\/a><\/span><\/span>
\nIn Taxes<\/a><\/span>
\n0<\/a><\/span><\/span><\/p>\n

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Payroll compliance requires all sizes of businesses\u2014even those with a single employee\u2014to adhere to all federal, state, and local guidelines that regulate how employees are paid. Everything from withholding requirements<\/a> to unemployment insurance contributions must be filed on time, and employers that violate the regulations are subject to steep penalties and risk being shut down.\u00a0<\/span><\/p>\n

Here are 12 things to know to keep your business on the right side of payroll compliance in the coming year.<\/p>\n

\"payroll<\/p>\n

Hiring Your First Employee<\/b><\/p>\n

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  1. Obtain an Employer Identification Number (EIN)<\/b>: An EIN (also called a Federal Tax ID Number) is a nine-digit number used for tax filing, reporting, and other documentation purposes. The EIN is required for any business with employees and companies that operate as a partnership or corporation. You can apply for an EIN through the Internal Revenue Service (IRS)<\/a> website portal or by faxing or mailing Form SS-4 to the IRS.<\/li>\n
  2. Register with the state<\/b>: Before hiring any employee, you must register your business with the state where your business is formed. Typically, this requires the company to obtain an employer tax account number from the state\u2019s department of revenue or employment development department.\u00a0<\/span><\/li>\n
  3. Register for unemployment insurance<\/b>: Unemployment insurance Tax (UI) is a federal program that provides temporary payments to unemployed workers (who are unemployed, not based on their own actions). Each state has its own unemployment rates and thresholds for qualifications. UI contribution is the responsibility of the employer.<\/li>\n
  4. Check for additional requirements<\/b>: State payroll tax regulations and requirements vary by state, so check with the state of formation for other tax obligations. For example, in addition to payroll and UI taxes, California imposes a State Disability Insurance Tax (SDI) and Employment Training Tax (ETT) on employers.<\/li>\n
  5. Complete all required payroll forms<\/b>: For federal purposes, employees must complete a W-4 withholding form and an I-9 form to prove the employee is legally permitted to work in the United States. In addition, check to see if your state requires a state withholding tax form to be completed and submitted.<\/li>\n
  6. Understand your tax obligations<\/b>: As an employer, you must know which taxes must be withheld from employees and which taxes you are obligated to pay.\u00a0<\/span><\/li>\n<\/ol>\n