Employee onboarding
Employee onboarding payroll checklist
A new hire creates a payroll record, a tax record and a compliance record, and the first paycheck is the deadline. This checklist covers what to collect before the first payroll: the W-4 and I-9, the state withholding forms, the pay rate and classification, the benefits and the first payroll approval.
Who sends itSent by the payroll service or the firm to a business client that is hiring an employee, before the first pay date.
0 of 24 ticked
01Before the first day
02Pay and classification
03Benefits and deductions
04Compliance and notices
05First payroll
What firms get wrong
- Starting the employee before the I-9 is complete, which creates a compliance problem from day one.
- Missing the state withholding form, so the first paycheck has the wrong state tax.
- Classifying an employee as exempt without checking the salary and duties test.
- Letting the employee type bank details into an email instead of the payroll portal.
- Approving the first payroll after the provider's cutoff, which delays the paycheck.
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Questions about this checklist
What documents does a new employee need to complete?
At minimum, Form W-4 for federal withholding, Form I-9 for work authorization and the state withholding form. The employer also collects the direct deposit form, the benefits elections and the handbook acknowledgment.
When must Form I-9 be completed?
The employee completes Section 1 by the first day of work, and the employer completes Section 2 within three business days. The employer keeps the form and does not send it to the payroll provider.
Does the employee have to use direct deposit?
The employer can offer direct deposit, but it should follow state law on whether it can require it. The employee should enter bank details in the payroll portal where possible.
What is state new hire reporting?
Most states require employers to report a new hire within a set number of days, usually for child support enforcement. The report is separate from the payroll tax registration.
When should the first payroll be approved?
The client should approve the first payroll preview before the payroll provider's cutoff, which is usually a few days before the pay date. A late approval can delay the first paycheck.
Sources
Checked November 3, 2026. Tax rules, forms and thresholds change; confirm them with the IRS or your tax software before relying on them.
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