Your Local Tulsa Payroll Company​

When setting up a new employee, you’ll need to collect the following documents: 

• W-4 and I-9 forms;
• Direct deposit form;
• State withholding form (as required);

You’ll also need to file a new hire reporting form as required by your state.

These forms can be filed manually through PDFs or electronically through paperless onboarding. While either process comes down to preference, paperless onboarding cuts down on administrative time, reduces errors, and increases employee engagement from Day 1.

While taxes may vary from state to state, most American companies pay the following taxes:

• 6.2% social security up to wage base (As of 2022, the wage base is $147,000)
• 1.45% Medicare tax
• 0.6% federal unemployment tax (on first $7,000 in taxable wages paid)
• State unemployment (rate and wage base vary by state)
• Worker’s compensation (as required by state)

Overtime is determined by a mix of federal and state laws. By federal mandate, non-exempt employees must be paid at least 1.5x their regular rate of pay for all hours worked in excess of 40 hours in a workweek. Some states, however, may have more favorable regulations for employees in addition to the baseline established by federal law above.

Paid time off (PTO) is not included in hours worked for overtime calculations. Similarly, exempt employees are not subject to overtime provisions either.

It is important to note that overtime is ALWAYS calculated on a workweek basis, regardless of pay frequency (for instance, overtime isn’t determined as over 80 hours in a biweekly pay period).

While each state has its own laws regarding when a final paycheck is due, these regulations usually fall somewhere in between the time of termination or resignation at the earliest and the next regular pay date at the latest. 

Be sure to research your state’s final paycheck regulations to be sure you remain within compliance, especially if your business uses a remote or hybrid model as these laws may be based on employee residence, not where the business is based.

The easiest time to switch payroll providers is when you call Valor Payroll Solutions. Otherwise, the next best times are at the beginning of the calendar year or the beginning of the next quarter.

We assist with transitions all year round, including mid-quarter changes. So if you really need payroll help, you don’t need to wait to get started.

Because we love keeping things simple, the onboarding process is a great way to introduce our customers to that commitment right away. Here’s how we start:

1. We’ll begin with a consultation call to determine your payroll needs and get to know your business better.
2. From there, we’ll provide you with a tailored payroll solution and, if you like what you see, we sign a service agreement.
3. We’ll send you two forms to complete electronically: an 8655 and EFT application.
4. From there, we ask that you provide employee, YTD payroll, and YTD tax payment information so we can pick up right where you’re at.
5. We then set everything up and provide you with a login to our system once it’s ready for your input.

And there you have it. Of course, if you have any questions, need support, or want to change your services, we’re always here to help you get the solutions you’re looking for.

Gross pay is the total compensation for services before taxes or any deductions are withheld.

Net pay is the employee’s take-home pay amount after all taxes and deductions are withheld.

From a business perspective, gross pay can be likened to revenue (the total money received) whereas net pay is profit (the money left over after any related costs and paid).

Payroll frequency depends on the rules of the state (or states) your business operates in as some states require a specific frequency. Normally, we’d suggest either biweekly or semi-monthly for clients who have employees.

Owners running payroll for S-Corp purposes can only run payroll as infrequently as quarterly.

As remote work becomes more commonplace, the use of freelance contractors has become more prevalent as a way to hire professionals for ad hoc projects or to manage costs on a per-project basis as opposed to hourly or as a salary basis.

While employees are workers who require tax and other special kinds of withholding and benefits handled by their employer based on state and federal laws, contractors are responsible for paying their own taxes after they’re paid and are not entitled to special withholding paid by their employers such as insurance benefits or Medicare.

States may define these two kinds of workers differently but the general rule of thumb is that an employer can control the entire workflow process of an employee. Conversely, an employer can only control the product of a contractor – unless written into their contract, the employer cannot mandate they attend specific meetings or be available at certain times, work on specific equipment, or other process-related requirements.

Misclassifying employees as contractors can result in non-compliance and any related fines and penalties so be sure to classify your workers correctly. More information on how to classify independent contractors and employees can be found in this IRS guide.

While each state (both where your business is based and where the remote employee lives) has its own laws and regulations regarding remote work, the process remains more or less the same when hiring on a remote worker. Be sure to…

• Set up unemployment and withholding tax accounts in the employee’s state (we do this on behalf of our clients)
• Review your handbook for any missing compliance pieces required in the new state
• Provide your employee with compliant labor law posters electronically
• Be cognizant of the pay frequency, overtime, and minimum wage laws of the new state
• Be aware of any state-mandated paid leave policies

At the federal level, overtime is defined as all hours worked in excess of a 40-hour workweek. Some states have either passed or are in the process of passing laws to shorten the workweek to 35 or 32 hours so it is important to consider any state-level mandates as well to remain compliant.

No, there is no legal requirement to obtain new W-4 forms each year. Employees can, however, complete new W-4s whenever they would like to update their tax status and withholding.