The Small Business Payroll Checklist for New Employers

Running payroll for the first time is a milestone — and a responsibility. Miss a tax deposit or misclassify a worker and the penalties add up fast. This checklist keeps you on track.

Before your first payroll run

1. Get an EIN from the IRS — your business's tax ID.
2. Register for state withholding and unemployment accounts.
3. Classify workers correctly as employees (W-2) or contractors (1099).
4. Collect a completed W-4 and I-9 from each employee.
5. Choose a pay schedule (weekly, biweekly, semimonthly, monthly).

Every pay period

• Calculate gross pay for each employee.
• Withhold federal, state, and FICA taxes.
• Apply benefit deductions (health, retirement).
• Issue a clear pay stub with each payment.
• Keep a record of every run.

Most states require you to provide employees with an itemized pay stub. Even where it's optional, it's good practice.

Ongoing compliance

Make pay stubs the easy part

You don't need expensive software to produce professional pay stubs. OakPaystubs generates accurate, itemized stubs with the correct tax calculations for your state — pay only for the stubs you create.