Startup Payroll Setup & Compliance
Written by Aparna Devalla
Curated by Rubric Financial
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Getting Started: EIN and State Registrations
- Obtain a federal Employer Identification Number (EIN) from the IRS before hiring. This is required for all payroll tax filings and can be obtained online immediately.
- Register with your state's department of revenue for income tax withholding and with the state employment agency for unemployment insurance (SUI) in every state where you have employees.
- Some states and localities require additional registrations for disability insurance, paid family leave, transit taxes, or local income tax withholding.
- Keep track of all registration numbers and filing frequencies, as each state has different deadlines, rates, and electronic filing requirements.
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About the author
Aparna DevallaCPAHead of Tax & Accounting
CPA and Head of Tax & Accounting at StartupCFO. Specializes in multi-state tax compliance, R&D credits, and GAAP-compliant books for venture-backed startups.
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