Payroll Compliance for Growing Startups

Hiring your first employees is exciting, but it brings a web of compliance responsibilities.

Employee vs. Contractor

Misclassifying employees as independent contractors is a top IRS target. Ensure you understand the common law rules regarding behavioral and financial control.

Payroll Taxes

You are responsible for withholding income tax, Social Security, and Medicare from employee wages, as well as paying the employer portion of these taxes.

Workers' Comp

Almost every state requires businesses with employees to carry workers' compensation insurance.

Deadlines Matter

Payroll tax deposits must be made on a strict schedule (monthly or semi-weekly). Late deposits incur immediate penalties.