Before your LLC’s first payroll, confirm its employer name and EIN, collect employee information and forms, arrange wage payments, and assign responsibility for withholding, tax deposits, returns and year-end wage reporting. The IRS hiring overview and employment-tax guidance outline the federal starting points.
This checklist assumes the worker has already been determined to be an employee working in the United States. It does not resolve worker classification or cover every state and local employment requirement.
Confirm the LLC’s employer name and EIN
An employer needs an employer identification number, or EIN, to report employment taxes. If your LLC already has an EIN, check its existing records before applying for another one. Confirm which entity will employ the worker and which name and EIN belong on its employment-tax records. See IRS Publication 15.
A single-member LLC that is disregarded for federal income-tax purposes is treated separately for employment taxes. It uses the LLC’s name and EIN for employment-tax reporting; do not assume the owner’s income-tax treatment determines the payroll identity. The IRS single-member LLC guidance explains this distinction.
For related background, see our guide to getting an EIN.
Collect employee information and the right forms
Form I-9 and Form W-4 serve different purposes. Form I-9 addresses identity and authorization to work in the United States, with roles for both the employer and employee. Form W-4 supplies information for federal income-tax withholding. Neither replaces the other. The IRS also directs employers to obtain employee Social Security number information. See IRS guidance on hiring employees.
An individual taxpayer identification number, or ITIN, does not authorize employment and is not a substitute for an employee’s Social Security number. Keep that distinction clear when collecting information for payroll. The same IRS hiring guidance addresses this limitation.
Decide who will collect and check the information, where it will be stored, and who needs access. Treat employee forms and identifiers as sensitive records.
Assign each payroll-tax responsibility
Employers generally withhold federal income tax and the employee share of Social Security and Medicare taxes. Employer contributions and unemployment-tax responsibilities are separate obligations; employee withholding is only one part of payroll taxes. See Understanding employment taxes.
Assign responsibility for these distinct tasks:
- Calculating withholding and employer tax obligations.
- Depositing employment taxes under the applicable schedule.
- Filing the required employment-tax returns.
- Preparing year-end Form W-2 wage reporting.
Filing a return and depositing taxes are separate tasks. Do not treat completion of one as completion of both. Use the current Publication 15 to identify the applicable requirements and schedules rather than assuming every employer follows the same calendar.
Run a first-payroll readiness check
Use this checklist to make responsibilities concrete:
- [ ] Confirm the employing LLC’s name, EIN and existing entity records.
- [ ] Organize Form I-9 responsibilities, Form W-4 and employee SSN information.
- [ ] Arrange how wages will be paid and who will prepare payroll.
- [ ] Set up secure storage and appropriate access to payroll information.
- [ ] Name the person responsible for withholding and employer taxes.
- [ ] Assign tax deposits, return filing and Form W-2 reporting separately.
- [ ] Check applicable state and local payroll requirements, new-hire reporting, insurance and labor obligations.
The federal hiring and employment-tax resources support the federal portions of this checklist. They do not establish all state and local requirements. Resolve those separately before treating the setup as complete.
A paid payroll service is optional. If you use one, establish who handles each task and how you will confirm completion; hiring a provider is not a guarantee that every obligation has been met.
Frequently asked questions
Does an existing EIN mean my LLC needs another one?
No, not automatically. Confirm the correct employer records first. A disregarded single-member LLC uses its own name and EIN for employment taxes. See IRS single-member LLC guidance.
Are Form I-9 and Form W-4 interchangeable?
No. I-9 concerns identity and work authorization; W-4 concerns federal income-tax withholding. See IRS hiring guidance.
Is filing a payroll return the same as depositing taxes?
No. Filing and depositing are separate responsibilities with applicable requirements explained in Publication 15.
Must my LLC hire a payroll service?
No. A paid service is optional. Assign responsibility for each applicable obligation whether payroll is handled internally or through a provider.
Sources checked November 6, 2026