When it comes to onboarding a new employee, many things need to be taken into consideration, especially in the area of payroll. In addition to ensuring that an employee is properly trained, equipped, and oriented to their work environment, a company must also make sure that their payroll is set up correctly. From withholding taxes to choosing the right payment method, onboarding an employee involves several essential must-do tasks for payroll. In this blog, we’ll discuss the five most critical payroll tasks that businesses must prioritize when welcoming a new employee onboard.
Payroll Onboarding Tasks When Onboarding a New Employee
Collect Employee Information
One of the most crucial initial steps in onboarding a new hire is collecting their essential information. This should include full name, date of birth, social security or tax identification number, and contact details. Also, verify that the New Hire Reporting Form is complete.
Verify Tax Forms
Before processing payroll for a new employee, ensure that they have filled out and submitted their tax forms to the HR department. This includes a W-4 form for federal income tax withholding and the applicable state tax form (if applicable). These forms provide the necessary information to determine how much tax is to be withheld from each paycheck.
Decide on Payment Methods
The next key task is to decide on how an employee will receive their pay. Will it be through direct deposit, paper check, or payroll card? Whatever the method, it should align with both the company’s policies and the employee’s preferences.
Establish Payroll Frequency
Another important decision to make when onboarding an employee is to establish the right payroll frequency. This could be weekly, bi-weekly, or even monthly. This frequency will determine when payroll taxes are paid, how often paychecks are issued, and how much an employee is paid per pay period.
Create Payroll Deductions
Finally, creating payroll deductions is a must-do task. These deductions include federal and state taxes, insurance premiums, 401(k) contributions, child support, and garnishments, among others. Deductions should be carefully reviewed and calculated so the correct amount is withheld from each paycheck.
In conclusion, onboarding an employee involves various tasks, including several critical payroll tasks that businesses must prioritize. By collecting employee information, verifying tax forms, deciding on payment methods, establishing payroll frequency and creating payroll deductions, businesses can ensure the smooth onboarding process of new hires. In addition to ensuring these payroll tasks are handled accurately, businesses should also have the necessary payroll software or system in place that assists with the process. When onboarding an employee, taking your time to do things correctly can save time and frustration down the road. It’s up to the business to ensure that the new hire is properly trained, equipped, and fully integrated into the company’s culture.
Precisely Payroll provides payroll services in Central Oregon. We can help you onboard new employees. Contact us at (541) 317-0100 or reach out to us online.