Employee Payroll Onboarding Checklist
Hiring a new employee is exciting – but payroll onboarding is where compliance risk often hides. Miss one form or setup step, and you could face fines or frustrated employees. This Employee Payroll Onboarding Checklist covers everything you need to collect and set up before the first paycheck. You can also download the printable PDF version for easy reference.
Step 1 – Collect Required Forms
- Form W-4 (employee’s tax withholding elections)
- Form I-9 (employment eligibility verification)
- State-specific withholding forms (where applicable)
- Emergency contact information
Step 2 – Set Up Payment Preferences
- Direct deposit authorization form
- Bank account verification (voided check or online confirmation)
- Paper check option (if chosen)
Step 3 – Enter Employee into Payroll System
- Input personal information (name, address, SSN)
- Enter tax withholding elections (from W-4/state forms)
- Add pay rate (hourly/salary) and pay schedule
- Assign department, location, or job code (if applicable)
Step 4 – Verify Benefits Enrollment
- Health insurance enrollment (if offered)
- Retirement plan setup (401k, SIMPLE IRA, etc.)
- Other deductions: commuter benefits, HSA, union dues
Step 5 – Confirm Compliance Items
- Ensure employee is classified correctly (W-2 vs 1099)
- Verify new hire report is filed with state agency (required in all states)
- Double-check eligibility documents (I-9 compliance)
- Provide employee access to pay stubs & tax documents
Download the Employee Payroll Onboarding Checklist PDF
Get the printable version here: Download Employee Payroll Onboarding Checklist PDF
FAQs
How soon must I file a new hire report?
Most states require reporting within 20 days of hire, but some require as soon as 7 days.
Do remote employees follow the same onboarding rules?
Yes – you must still collect I-9, W-4, and state forms based on the employee’s residence.
What happens if I don’t collect a W-4?
The IRS requires you to withhold at the highest rate (single, no adjustments) until the employee submits one.
Simplify employee onboarding with RemoteBooksOnline.
We handle payroll and bookkeeping together – so every hire is set up right from day one. Get a free quote today.
Related Checklists
If you’re handling payroll for multiple states, you may also need our Payroll Tax Compliance Checklist and Payroll Recordkeeping Checklist
