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Payroll Administration in the United States

One employee, one more state

Payroll Administration in the United States

Hiring one person in a new state means registering with that state before you can pay them.

GCC business setup specialists

Payroll registrations follow your people

A US payroll runs federal income tax withholding and employment taxes, plus state withholding and state unemployment insurance in each state where an employee works. Each of those states requires its own registration, its own filings and its own deposit schedule. A single remote hire in a new state therefore creates a permanent new set of obligations, which is why remote hiring needs a payroll conversation first.

  • State registrations completed before the first pay run
  • Federal and state deposit schedules met, not missed
  • Multi-state and remote hiring modelled before you commit

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20+

Mainland, free zone and offshore jurisdictions we file in — so the recommendation is based on your activity, not on which authority we happen to be registered with.

7,000+

Companies successfully established.

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What runs when

US payroll obligations

Federal, plus a set per state.

ItemLevelFrequency
Federal income tax withholdingFederalPer pay run, deposited on schedule
Social security and medicare taxesFederalPer pay run, employer and employee
Federal unemployment taxFederalAnnual, with deposits
Federal payroll returnFederalQuarterly
State withholdingPer employee statePer state’s schedule
State unemployment insurancePer employee stateQuarterly, at a state-assigned rate

Withholding rates, deposit schedules, unemployment insurance rates and registration requirements are set by federal and state authorities and change. Yours are applied as currently in force.

How it works

Running payroll properly

Register, then run, then file.

01

Register where your people are

Federal employer registration plus state withholding and unemployment accounts in every state where an employee works.

02

Run each pay period

Payroll calculated, withholding and employer taxes computed, deposits made on schedule and payslips issued.

03

File and close the year

Quarterly federal returns and state filings submitted, and annual employee statements issued on time.

To run payroll

What we need

Work location, not company location.

Talk it through →

  • Employee details and start dates
  • The state where each employee actually works
  • Whether any employee works in multiple states
  • Agreed pay and pay frequency
  • Federal and state withholding elections
  • Benefit deductions, if any
  • Workers’ compensation policy details
  • Existing state account numbers if any
  • Leavers and their final pay, with state deadlines
  • Prior payroll records on transfer
  • Fiscal year end
  • Authorisation to file on your behalf

Scope

What is included, and what is not

Stated plainly, so nothing is added once the engagement starts.

Included in the service fee

  • Federal employer registration
  • State withholding and unemployment registrations
  • Payroll run on your pay cycle
  • Withholding and employer tax computation
  • Deposit scheduling and submission
  • Quarterly federal and state filings
  • Annual employee statements
  • Reconciliation to the accounting records

Not included, quoted separately

  • Taxes and contributions, paid at cost
  • Wages themselves
  • Workers’ compensation premiums
  • Penalties for periods before engagement
  • Payroll software licences
  • Benefit plan administration
  • Recruitment
  • US tax advice

Verify independently

Relevant US authorities

We file directly with these bodies on your behalf.

United States Patent and Trademark OfficeUS Citizenship and Immigration ServicesInternal Revenue ServiceState labour and revenue departmentsFinancial Crimes Enforcement NetworkState financial regulators

Questions

US payroll — FAQs

Do I need to register in a state for one employee?

Yes. State withholding and unemployment insurance accounts are needed in each state where an employee works, regardless of how many employees that is.

Does the company’s formation state matter for payroll?

Not really. What matters is where each employee physically works, which is why remote hiring expands your obligations.

What if an employee works in two states?

It needs handling specifically, as both states may have claims. We address it rather than defaulting to one.

How quickly must final pay be made?

It varies by state, and some states require payment very quickly after termination. We apply the right deadline for that state.

Can you take over payroll mid-year?

Yes. We need year-to-date figures and state account details to carry forward correctly, and we reconcile before the first run.

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      For founders and business decision-makers considering paid business services. Not for job applications, employment searches or personal visa-only requests.

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