What's covered in this guide?
What you'll need before you start
Gather the following information before starting implementation. Having everything ready will make the process significantly faster.
Company information
Federal Employer Identification Number (EIN)
State tax account numbers for each state you operate in
Business bank account details (routing and account number)
Locations and team structure, including physical addresses
Federal tax deposit schedule (monthly or semiweekly)
State unemployment insurance (SUI) tax rate
Employee information
Full legal names, Social Security numbers, and home addresses
Federal W-4 withholding elections
State withholding certificate elections (varies by state)
Direct deposit bank account details
Current pay rates and salary information
Active deductions and employer contributions
Time off balances and accrual policies
Forms and portal access
Login credentials for your IRS EFTPS portal
Login credentials for each state tax portal
A completed or ready-to-sign Form 8655 (Reporting Agent Authorization)
If switching providers mid-year
Year-to-date earnings totals per employee
Year-to-date tax withholding totals per employee
Year-to-date deduction and contribution totals
Current time off balances
Step 1 — Company details
Locations and teams
Add every physical location where your employees work. Navigate to Workforce > Teams, click Add, then select Location. Enter the location name and a complete street address for each site.
Once a location is created, configure its tax jurisdictions at Payroll > Payroll Settings > Tax Jurisdictions. Tax jurisdictions determine which state and local taxes apply to employees at that location — every location needs federal, state, and any applicable county or city jurisdictions assigned before payroll can process correctly.
For more detail on how locations and tax jurisdictions interact, see How Locations Affect Payroll and Adding Locations & Teams.
Federal tax info
Set up your company's federal tax profile at Payroll > Payroll Settings > Tax Profiles. You'll need:
EIN — Your 9-digit Employer Identification Number
Deposit schedule — Monthly or semiweekly, as determined by the IRS
Filing frequency — Whether you file Form 941 (quarterly) or Form 944 (annual, for small employers)
Exemptions — Indicate if your organization is exempt from FICA or FUTA
You'll also need to provide access to your EFTPS (Electronic Federal Tax Payment System) portal so Workforce can file and deposit federal taxes on your behalf. For step-by-step instructions, see Configure Tax Profiles.
State tax info
For each state where you have employees, you'll need to provide:
Your state tax account number(s)
Your state unemployment insurance (SUI) rate
Any state-specific registration details
Each state also has its own tax portal where filings and payments are managed. Workforce needs to be authorized on each state portal before it can file on your behalf. Your implementation specialist will guide you through the specific requirements for each state. For full details on what's involved, see State Tax Portal Access — TPA Setup by State.
Bank account details
Add your company's bank account for payroll transactions at Payroll > Payroll Settings > Company Setup. You'll need:
Business name — As it appears on the account
Routing number — 9 digits
Account number
This is the account Workforce will debit for payroll funding — wages, taxes, and any employer contributions.
Employees enter their own direct deposit details (routing number, account number, and account type) through self-service onboarding in the Workforce app. See Employee Self-Service for Payroll.
Journal / accounting info
Map your General Ledger (GL) accounts so payroll journal entries flow correctly into your accounting system. You'll need to assign accounts for wages, taxes, deductions, contributions, and liabilities. For step-by-step instructions, see Journal Setup.
Step 2 — Regulatory review
Form 8655 — Reporting Agent Authorization
Form 8655 authorizes Workforce to act as your reporting agent with the IRS. This allows Workforce to file federal tax returns (Forms 941/944) and make tax deposits on your behalf.
During implementation, you'll:
Provide your business details (legal name, trade name, address, contact person)
Review the pre-filled Form 8655 generated by Workforce
Sign and return the completed form
For a detailed walkthrough, see the Form 8655 section of Configure Tax Profiles.
State tax portal authorization
Each state where you have employees requires separate authorization for Workforce to file taxes on your behalf. This typically involves:
Logging into the state's tax portal
Adding Workforce as an authorized third party or reporting agent
Providing any confirmation codes or access credentials
Your implementation specialist will provide step-by-step instructions for each state. The process varies — some states handle this through an online portal, while others require a paper form. For details, see State Tax Portal Access — TPA Setup by State.
TaxStatus — IRS transcript verification
TaxStatus is a service that retrieves IRS transcripts on your behalf. These transcripts help verify your tax account information and ensure everything is set up correctly.
During implementation, you'll receive an onboarding link from TaxStatus. Click the link and complete the identity verification process — this confirms you're authorized to access your company's IRS records. Once verification is complete, Workforce can pull your IRS transcripts to confirm your tax account details, deposit schedules, and filing history.
The TaxStatus identity verification must be completed by an authorized representative of your company — typically the business owner or a designated officer.
Step 3 — Staff onboarding
Staff list
You'll need a complete list of every employee (and contractor, if applicable) who will be paid through Workforce. For each person, you'll need:
Full legal name
Social Security number (or TIN for contractors)
Home address
Date of birth
Employment type and pay rate
Invite employees to self-service onboarding
Send invitations to your employees through Workforce so they can complete their own onboarding. Employees will enter:
Personal details and home address
Social Security number
Federal W-4 withholding elections
State withholding certificate elections
Direct deposit bank account information
Self-service onboarding saves time and ensures employees enter their own sensitive information directly. For more detail on what employees can view and update, see Employee Self-Service for Payroll.
Employee withholding certificates
Each employee needs withholding certificates on file for federal taxes (W-4) and for every state where they work.
Federal (W-4): Employees select their filing status, claim dependents, and indicate any additional withholding or exemptions.
State certificates: Each state has its own withholding form with different requirements. Some examples:
California — DE-4
New York — IT-2104
Illinois — IL-W-4
A few states don't require a separate state withholding certificate.
For full details on withholding certificates by state, see Withholding Certificates.
Step 4 — Payroll configuration
Earnings rules
Earnings rules define how your employees are paid. Set up rules for:
Regular pay — hourly rates or salary amounts
Overtime — multiplier rates (e.g., 1.5x, 2x)
Bonuses, commissions, tips — additional earnings types
Reimbursements — non-taxable payments
Each earnings rule can be assigned a GL account for accurate journal entries. For detailed setup instructions, see Earnings Rates.
Benefits, deductions, and contributions
Employee deductions are amounts withheld from employee paychecks, such as:
Health insurance premiums
401(k) / retirement contributions
HSA / FSA contributions
Garnishments
Employer contributions are amounts the company pays on behalf of employees, such as:
Employer 401(k) match
Health insurance employer portion
Life insurance
Each benefit, deduction, and contribution type can be assigned to the appropriate GL accounts. For detailed setup instructions, see Benefits & Deductions.
Time off rules
Configure your time off policies, including:
Leave types — PTO, sick leave, vacation, personal days, etc.
Accrual rules — how balances accrue (per pay period, per hour worked, annually, etc.)
Carryover limits — maximum balances that roll over year to year
Payout on termination — whether unused balances are paid out when an employee leaves
Each leave type can be assigned GL accounts for expense tracking and accrual liability. For detailed setup instructions, see Time Off Types and Time Off in Payroll.
Time off balances
If your employees have existing time off balances from a prior provider or from earlier in the year, enter those balances so accruals continue correctly from day one.
Step 5 — Opening balances
If you're switching payroll providers mid-year, year-to-date (YTD) totals for every employee need to be imported into Workforce. This ensures W-2s and tax filings are accurate at year end.
Opening balances include:
YTD earnings — gross wages by earnings type
YTD taxes — federal, state, and local taxes withheld (both employee and employer portions)
YTD deductions — retirement contributions, insurance premiums, etc.
YTD employer contributions — employer match amounts, insurance, etc.
Workforce handles the import — you'll provide your year-to-date payroll records and your implementation specialist will work with you to load them. You'll have the opportunity to review and adjust opening balances again after your parallel pay run (Step 6).
For more detail on what's involved, see Transitioning Payroll History to Workforce.
Step 6 — Parallel pay run
Before going live, run a parallel pay run alongside your existing provider. This means:
Process one pay period in both Workforce and your current provider
Compare the results — net pay, tax withholdings, deductions, and contributions should match
Identify and resolve any discrepancies
The parallel pay run is the final check before cutover. After resolving any differences, you can update your opening balances one last time to account for the parallel period.
Step 7 — Go live
Once your parallel pay run is verified and all opening balances are finalized:
Confirm your go-live date with your implementation specialist
Coordinate the handoff with your previous provider — see Canceling your previous payroll provider when starting with Workforce for guidance on timing, quarterly tax filings, W-2s, and state portal access
Run your first live pay run in Workforce
Your implementation specialist will be available to support you through your first several pay runs.