Step 1: Apply for EIN

Before you can hire anyone, you need to get an EIN (Employer Identification Number) from the IRS.  People also often refer to EINs as an “Employer Tax ID.”

Step 2: Open a Business Bank Account

You will need a business bank account to process the transactions associated with payroll.  The most common debit transactions you can expect to occur are the total payroll tax, employee direct deposit and payroll fee amounts.  Other transactions you may see are for workers' compensation and employee garnishment payments.  

Step 3: Apply for FL Reemployment ID

A new business must report its initial employment in the month following the calendar quarter in which employment begins. The FL Department of Revenue recommends that employers register to pay reemployment tax using their online application.

Click here to find out if your business is liable for FL Reemployment Tax

Click here to apply for FL Reemployment Tax

Step 4: Gather Employee Information

Here are the details and forms you’ll need to keep on hand for each employee or contractor you hire:

• Full name
• Employment start date
• Tax filing number (Social Security number or EIN)
• Date of birth
• Current address
• Direct deposit: The best practice is to have the employee provide you with something not hand-written for accuracy purposes.  For example, a voided check.
• Compensation details: Make sure you take the step of putting details about compensation in writing to prevent disagreements from popping up.
• Form I-9 to verify employees’ eligibility for employment in the US
• A Form W-4 for employees (or a Form W-9 for independent contractors)

Choosing a pay frequency is up to you.  Which one will fit best for your business?  Here's a list to help with your decision.

Weekly:

Is your staff mostly hourly?  Then this period may be the best fit for you.  Weekly payroll is popular because it allows your employees to have a better handle on their money, since they get it only a few days after they earn it.  There are 52 paychecks in a calendar year with a weekly pay frequency.  Most companies have their pay period from Sunday to Saturday with a check date on the following Friday.  This allows time to gather hours and prep for a smooth payroll submission.

Biweekly:

A biweekly payroll means getting paid every two weeks, which usually happens every other Friday.  Paychecks reliably arrive on the same day every other week, which can be a relief for many.  It’s also the next best option for hourly employees who get paid overtime, because it’s easy to account for those extra hours since the periods always consist of the same number of days.  Just like a weekly pay frequency, most companies have their pay period from Sunday to Saturday (two weeks in total) with a check date on the following Friday.  This allows time to gather hours and prep for a smooth payroll submission.  A biweekly payroll has 26 paychecks in a calendar year.

Semi-Monthly:

A semi-monthly payroll means getting paid twice a month, usually on the 15th and 30th, or the 1st and the 15th.  This is one of the most common choices for workers who are salaried because it’s easier on the benefits and accounting side.  This pay frequency is mostly ideal for salaried employees as tracking an hourly employee's overtime hours can become a daunting task.  Having a timekeeping system in place will help eliminate the headache of tracking employee hours for this pay frequency.  There are 24 paychecks in a calendar year for a semi-monthly payroll.

Monthly:

This schedule is one of the least popular options out there.  This is because going 30 days without a paycheck is not doable for most folks.  Each state also has rules about how often you can pay your team, so in many areas, monthly payroll is not even an option.  A monthly pay frequency is commonly used by owners of an S-Corp.  Typically, an accountant suggests the owner pays themselves through payroll for tax purposes (consult a CPA or tax advisor for specific guidance).  A monthly pay frequency has 12 paychecks in a calendar year.

Pricing will differ depending on the services you select.  We realize that not all businesses are the same.  That’s why our team takes the time to get to know your business to provide you with a custom solution to fit your needs.

The information needed will differ depending on when you decide to make a switch.  In most cases you may be able to download most of what’s needed from your current payroll provider account, or you may need to ask the current provider for help.  Either way, we are here to help simplify the process.  It's what we excel at so please contact us for assistance.

The required info may include:

• Your organization’s legal name, type of business, and address
• Federal EIN (Employer Identification Number)
• FL Reemployment ID number
• Payroll schedule (check date & pay period dates)
• Payroll information and reports, including salary and hourly wage figures and payroll history
• Company bank account number and routing number
• Employee and contractor full legal names, mailing addresses, Social Security numbers (or EIN), email addresses, and tax withholding information (W4 status).  Include former employees and contractors who worked at any point during the current year
• Employee direct deposit bank account information
• Copies of the previous quarter’s tax forms (Form 941 & FL RT6)
• Documents authorizing the new provider to perform the services that are specified in your contract, such as filing and paying taxes and writing payroll checks

Yes, in addition to your employees, you can also pay contractors through MyGo Payroll.   We also automatically file their 1099s at the end of the year!