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What do I need employees to do to prepare for Payroll?

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It is in an employee�s interest to receive a paycheck as soon as possible, so generally, it will not take much convincing to have employees help you get them on the payroll. For the most part, everything you need to put an employee on the payroll will happen almost as soon as they are hired.

Make sure employees fill out all the paperwork they need to, so that their paychecks have the proper deductions. You will need, at least, a W-4 form, an I-9 form, and any state income tax forms. In addition, you will want to determine the legal work status of an employee and whether an employee will have exempt or non-exempt status.

Other small businesses may have additional forms for employees to complete. Many small businesses now use direct deposit to distribute checks. Direct deposit payroll puts the earned wages directly into an employee�s bank account, which is often cheaper and easier for both the employer and the employee. Other businesses offer pre-tax deductions such as health coverage, charitable contributions, or medical spending accounts. Employees will need to fill out any required forms for these programs as well.

Finally, make sure employees understand how your small business will conduct payroll. Do employees need to keep track of their own hours or will the company do it? What is the pay period, and can it ever be altered? Can a family member pick up the check for the employee? What should an employee do if there is a problem with his paycheck? Answer these questions on the front end of an employee�s tenure with the company.

Next Page: How do I ensure accuracy in the area of Payroll deductions?

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