Help Your Company Stay in Tax Compliance with These Critical Payroll Filings

A Practical Guide from The Payroll Company

Setting up payroll for your business is more than just paying employees on time. It’s also about staying compliant with complex federal and state tax regulations—something that can easily become overwhelming for busy business owners.

At [Your Payroll Company Name], we work with companies of all sizes to help simplify and automate payroll filing. Whether you’re just getting started or want to streamline an existing process, here’s what you need to know about the five most critical payroll filings to stay compliant and avoid costly penalties.

1. 📝 File New Hire Reports Promptly

Every U.S. business that withholds federal income tax, Social Security, or Medicare taxes must file IRS Form 941—the Employer’s Quarterly Federal Tax Return.

But that’s not all. Employers are also required to file new hire reports with their state. This information is used for child support enforcement and helps prevent unemployment insurance fraud.

Our Solution: We automate the new hire reporting process so you never miss a deadline.

2. 💼 Accurately File W-2s for All Employees

At year’s end, employers must provide Form W-2 to each employee paid more than $600 annually—regardless of whether they’re a family member, part-time hire, or seasonal worker.

Each W-2 must be:

Sent to employees by January 31
Filed with the Social Security Administration (SSA), along with a summary form (W-3), by the required deadline

Mistakes in W-2 filing can trigger IRS notices and delays in employee tax refunds.

Our Solution: We ensure W-2s and W-3s are prepared, verified, and filed correctly on your behalf.

3. 📊 Don’t Overlook Form W-3

IRS Form W-3 acts as the summary transmittal of all W-2s your company files. It must be submitted to the Social Security Administration and includes total wages paid, taxes withheld, and Medicare contributions.

Deadline: End of February each year
Common errors: Misreporting totals or late submissions

Our Solution: We double-check every W-3 for accuracy and deliver it electronically to meet federal deadlines.

4. 📅 Collect and Update Form W-4 Annually

Each new employee must complete a Form W-4, which tells you how much federal tax to withhold from their paycheck. But did you know it’s a smart practice to request updated W-4s from employees annually?

Life events like marriage, having children, or income changes can affect tax withholding accuracy. Encouraging employees to update their W-4s each year keeps you compliant and avoids IRS underpayment issues.

Our Solution: We provide self-service access for employees to review and update their W-4s through a secure portal.

5. ✅ Verify Work Authorization with Form I-9

Federal law requires that all U.S. employers verify the identity and work eligibility of every person they hire using Form I-9.

Must be completed within 3 days of hire
Employers must retain I-9s for a specific period and produce them upon request from federal agencies
Failure to comply may result in fines or legal action

Our Solution: We include I-9 tracking and digital documentation storage as part of our onboarding and payroll package.

Why Payroll Compliance Matters More in 2025

With increased federal and state scrutiny, higher penalties for noncompliance, and more complex remote-work rules, having a trusted payroll partner is critical to business success.

At [Your Payroll Company Name], we take the guesswork out of payroll taxes and filings. From new hire forms to quarterly tax reporting, we’ve got you covered—so you can focus on growing your business with confidence.

✅ Ready to Simplify Payroll Compliance?

Let our payroll experts guide you through setup, automation, and ongoing tax compliance. Whether you’re a startup or a growing enterprise, we’ll ensure your payroll is accurate, timely, and fully compliant.

👉 Contact The Payroll Company today for a free consultation or software demo.

Stay in Tax Compliance with these Critical Payroll Filings

When it comes to your company’s payroll, there is far more to consider than just the salaries of your initial employees. A well-organized payroll structure can protect your company from the IRS and may result in savings in both time and cost. Properly completing company payroll is often a task that most companies struggle with, so a well-structured payroll system is essential.

The US Census Bureau has general guidelines for how much businesses should spend on payroll, between 20-30% of gross income. However, this is not gospel truth and depends on the company itself and the industry it’s in. Every company is different, so it’s important to take this into consideration when making decisions about payroll.

When starting a new business, it’s important to remember to file various payroll reports and taxes on time. This includes filing New Hire Reports, which are required for businesses who keep wage taxes or pay Social Security/Medicare Tax. Failing to do so can result in trouble with the IRS.

1. Make Certain to File W-2’s Correctly

You must file a Form W-2 for every worker and Independent Contractor you pay, regardless of how much they are paid. This includes family members or friends who receive wages from your company. The only exception is if the person is paid entirely in tips, which are then properly reported to you.

If your company pays a total of $600 or more in wages during the year to any one worker, you must file a Form W-2 for that worker. This includes Independent Contractors who are considered self-employed for tax purposes.

2. Never Miscalculate Wages Earned and Taxes Paid IRS Tax Reporting Forms, Particularly Form W-3

Every year, the IRS Tax Form W-3 is submitted to the Social Security Administration. This form reports overall earnings, Social Security and Medicare earnings, and the corresponding taxes withheld for all workers on the company payroll for the prior year. The deadline for submitting this form is February 28th each year.

3. New Hire Complete Form W-4 and Instruct Your Employees to Update W-4s Annually

Every year, employees should fill out a W-4 form to provide their employers with the necessary information needed to collect taxes from their wages. This will help meet the federal government’s income tax obligations. Employers should have a system in place that requires employees to complete a Form W-4 annually.

4. Mandatory Employee Validation of Authorization to Work in the U.S. – Form I-9 Compliance

Federal legislation requires all employees in the U.S. to complete a Form I-9, which allows employers to verify an employee’s identity and work eligibility status. The form is available from the U.S. Citizenship and Immigration Services (USCIS) website.

All employees must provide certain information on the Form I-9, including their full name, date of birth, Social Security number, and current address. They must also provide documentation to verify their identity and work eligibility. Commonly used documents include a passport, green card, or birth certificate.

The Form I-9 must be completed and signed by both the employer and employee. The employee must sign the form before their first day of work. The employer must retain the Form I-9 for each employee for a minimum of three years after the date of hire or one year after the date of termination, whichever is later.

Payroll can be a daunting task for any business, but with the right structure in place, it can be simplified and less time consuming. By following the guidelines provided by the US Census Bureau, as well as filing all necessary reports and taxes on time, you can avoid trouble with the IRS.