The following are basic procedures for maintaining Federal and State payroll legislation. Following these procedures will help to sure that you stay on track correctly with your payroll obligations. Failure to comply with these laws can result in severe consequences. Obtain your Federal Employee Identification Number or EIN. This allows you to hire and pay your employees and registers them for tax levies and deductions. Use the W-4 form available on the IRS web site to calculate the payroll for your employees correctly. The IRS requires a W-4 for all new employees for the marital status and the number of tax allowances claimed. Based on the number of allowances claimed, employers can determine the amount of federal income tax to withhold. This can be revised at any time that an employee marries or has a child.
