Start-Up Companies

We Cater to Start-Ups

We can certainly empathize.  It was not that many years ago we found ourselves staring at an ominous list of to-do's while trying to set up H R Ledger.  That is why we cater to the noble endeavor of starting your own business.  Of course we didn't have to figure out how to do payroll but we did have to take care of the legal aspects, the office design, buying furniture, designing the computer network,  establishing security and obtaining marketing graphics - just to name a few.  We knew we would be better off to outsource these rather than attempting to do them ourselves. The same is true with payroll and benefits administration.  It is faster and easier to set up, more complete, requires less initial and ongoing expenditures when you intelligently outsource.   The most important feature we offer and the most critical to your survival is  knowing payroll taxes are being handled efficiently and accurately with our Total Tax Service.  And with our exclusive compliance services you’ll get off to a good start and keep on track.

Now it's your turn and we'd like to help.  Below you'll find a list of most of the necessary government forms that you must file to start your business and begin your payroll.  Please feel free to use them. If you have any questions or need help call us at 1 (800) 451-1136 and one of our H R professionals will walk you through the process.  In fact, if we do your payroll, we can complete most of the forms for you . . . you'll just need to sign them.

Payroll is not just for employees but can help owners!

We have a number of accounts that set up payroll with us even thought they don't have employees. 

• One very common need among small business owners is health insurance.  Most carriers have a minimum time in business in order to qualify for there coverage.  Payroll records have been the common request by carriers to show eligibility.
• A frequent pitfall that costs new owners their businesses is not preparing for the inevitable arrival of the taxman.  Some owners have us prepare payroll for them which requires tax payments so they're obligations are met incrementally, they don't have to come up with a lot of cash on the 15th of April, they establish payroll records for employment verification and they are prepared to have that first employee.  Please consult with the appropriate tax & financial consultants before implementing this strategy.
• If your company is formed as a C-Corporation you will need to receive regular payroll compensation.

Preparing for you first employee

£ - IRS SS-4.  This is your application for a Federal Employer ID Number for payroll tax filing.  A new one may also be required when there is a change of ownership or you are coming out of a PEO (staff leasing arrangements).

£ - EDD DE1 (2088).   This is your application for a California State Employer ID Number and Em­ployer Registration.  Each State is different, so if you have employees in other States you will need to complete the necessary registration for each State.  Call us for those additional state requirements.

£ - Bank Account.  You will need to establish a banking account for payroll. This is the account we will draw payroll funds from. . - Workers’ Compensation.  You will need to obtain Workers’ Compensation Insurance from your broker. If we are to produce Workers’ Comp. reports from payroll we will need classification codes and rates, but it makes you life a whole lot easier. . - I – 9 Employment Eligibility Verification.  The INS/Homeland Security requires that this be com­pleted for each employee within 72 hours of hiring.  You should keep this on file in a safe place with each employee’s personnel records.

£ - W – 4.  Each employee should complete a W-4 worksheet to determine the number of exemptions to claim on their taxes.  It would be advised (but not required) to have each employee complete one each year.

 £ - Employment Posters. Certain regulations are required to be posted at the workplace in clear view of employees – such as minimum wage standards, etc.  A good source for these is Cal Chamber.

 £ - Payroll Frequency. You will need to determine your payroll cycle.  Weekly pays 52 times a year; bi-weekly pays 26 times a year; semi-monthly pays 24 times a year; monthly is only available to government or all exempt employees.  Most employers pay in accordance with practices common in their industry.  As a rule-of-thumb, the less frequent your payroll, the less costly it is in the long run.

£ - Pay Date.  You will need to determine your pay date.  This is the day, after your pay cycle ends, that you pay your employees.  This is regulated by the States.  In California you must pay within 7 days of the end of a weekly or bi-weekly pay cycle, 10 days of semi-monthly, and by the 26th of the current month on monthly pay cycle. As a rule-of-thumb we require that you report your payroll at least two days before pay day in order to assure check delivery. If you give yourself a few more days between the end of the cycle and payday, it makes it easier on you over weekends, scheduling around vacation, less expensive shipping costs, and less anxiety over payroll.  If you select your pay date to be the last day of your pay cycle, for example, you will have to submit your payroll two days before the end and will therefore have to estimate the remainder of the pay cycle.  This will then have to be reconciled every payroll.  You can call us and we can advise you on the best schedule for your situation.

Our system is capable of handling employees in all 50 States.  Although our primary marketing area is the west, rest assured we can take of state requirements regardless of where you need to have employees.  Links to important Federal and State Employer Resources are available by going to our Employer Resources Page.  A printed copy of the above checklist is available for free by calling (800) 451-1136