Before you can run your first payroll, you need employer registrations, employee paperwork, and a system to calculate and distribute pay. Missing any piece creates problems that are easier to prevent than fix.

Start with your federal Employer Identification Number. If you don’t have an EIN yet, apply through the IRS website. It’s free and you get the number immediately for online applications. This number identifies your business for all federal payroll tax reporting.

Missouri requires two separate registrations. You need a Missouri Tax Identification Number for state withholding through the Department of Revenue. You also need to register with the Missouri Division of Employment Security for unemployment insurance. Both can be done online but they’re separate systems with separate accounts.

From each employee, you need three forms before they start work. A federal W-4 tells you how much federal income tax to withhold. A Missouri W-4 handles state withholding. An I-9 verifies they’re authorized to work in the United States. Don’t let employees start working before completing these forms. Playing catch-up on paperwork creates compliance headaches.

You’ll need basic employee information beyond the forms. Legal name, Social Security number, address, date of birth, and bank account details if you’re paying by direct deposit. Store this information securely since payroll data is exactly what identity thieves want.

Decide on a pay schedule before running your first payroll. Weekly, biweekly, semimonthly, or monthly. Missouri doesn’t mandate a specific frequency, but whatever you choose needs to stay consistent. Employees should know when they’re getting paid.

Set up a bank account for payroll if you haven’t already. Some businesses run payroll from their main operating account. Others prefer a separate payroll account to keep tax withholdings segregated. Either approach works as long as funds are available on payday and you can make tax deposits on schedule.

You need a way to calculate payroll correctly. This means either payroll software, a payroll service, or a Mid-Missouri bookkeeper who handles it for you. The calculations involve gross pay, federal withholding, Social Security, Medicare, state withholding, and any deductions. Getting these wrong means notices from the IRS or Missouri DOR.

Know your tax deposit schedule. Federal deposits are either monthly or semiweekly depending on your total tax liability from the lookback period. New employers usually start on a monthly schedule. Missouri withholding deposits follow a similar structure. Missing deposit deadlines results in penalties that add up fast.

Finally, understand Missouri wage and hour rules. Minimum wage, overtime requirements, final paycheck timing when someone leaves. Payroll isn’t just about the money moving. It’s about staying compliant with employment law.

The setup takes effort upfront. But once the registrations, paperwork, and systems are in place, payroll processing becomes routine. Most of the stress comes from trying to run payroll without all the pieces in place first.