Payroll onboarding
Payroll onboarding checklist
Payroll onboarding is a handoff with a hard start date. The firm needs the business registrations, the employee records and the prior payroll history before the first pay date, or the first paycheck is late and the year-to-date totals are wrong. This checklist groups what to collect for a new payroll client, including the records that only matter when the client switches mid-year.
Who sends itSent by the payroll service or accounting firm to a new payroll client after the engagement is agreed and before the first payroll run. The firm sets the first pay date, then works backward from it.
0 of 27 ticked
01Business and bank details
02Employee records
03Prior payroll history
04Authorizations and compliance
05First payroll
What firms get wrong
- Starting payroll before the state withholding and unemployment accounts are confirmed, which delays the first tax deposit.
- Collecting W-4s but not the state withholding forms, so state tax is withheld incorrectly from the first paycheck.
- Switching mid-year without the year-to-date register, which breaks the annual W-2 totals.
- Letting employees send bank account numbers in an email instead of entering them in the payroll portal.
- Setting the first pay date before the approval cutoff is agreed, so the first payroll is approved late.
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Questions about this checklist
What is needed to start payroll for a new client?
Start with the EIN, the payroll bank account, the pay schedule, the state registrations and the employee roster with Forms W-4 and state withholding forms. If the client is switching mid-year, add the year-to-date register, the filed payroll returns and the last pay stubs.
What is Form 8655 used for?
Form 8655 authorizes a reporting agent to file payroll tax returns and make deposits for the client. The client signs it, and the firm keeps it with the payroll engagement records.
Should the employer send copies of employee I-9 documents?
The employer keeps the Form I-9 and the identity documents in its own files. The payroll provider usually needs confirmation that the I-9 is complete, not a copy of the documents.
Can a client switch payroll providers in the middle of the year?
Yes. The new provider needs the year-to-date register, the payroll tax returns filed so far and the last pay stubs, so the annual W-2s and the quarterly returns agree at year end.
Who enters direct deposit details?
Have employees enter their own bank details in the payroll provider's self-service portal where possible. If the firm collects the details, use a secure field and never put account numbers in an email or a checklist answer.
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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