Now that you've entered all of your employee details, we can calculate the employee portion of taxes. Completing your Tax Profile will allow us track the employer portion of payroll tax liabilities and remind you when all tax payments are coming due.
Follow the below steps to complete your Tax Profile:
- Click Settings > Tax Profile.
- Enter your Federal Employer ID Number. Click Save. This number (also known as your EIN) is required if you have employees in the US. Apply for an EIN.
- Enter your payment frequencies. Click Save.
- Enter your State Employer Number. Click Save.
- Fill in your tax rates. Select the effective as of date and click Save.
- If you are exempt from federal or state unemployment tax, click on Are you exempt from this tax? Select the effective as of date and click Save.
Note: If you're uncertain of these tax rates, you can use the defaults. These defaults have been designed to help avoid penalty scenarios and will use the maximum tax rate and minimum employee allowances.
That's it, you are all set! Now, when you approve your first payroll you can view the Tax Liabilities page to see which payroll taxes are coming due, when, and to whom. Just remember to update your tax profile accordingly if you are ever informed of a rate of frequency change for your business.
The path from here can be a bit varied. What's next?
Have you run payroll this year outside of Wave? If so, you'll need to enter this information in order to accurately complete quarterly and annual filings. On to Step 3: Entering Payroll History.
If you're a new employer and/or have not run payroll this year, you can go ahead and skip ahead to Step 4: Direct Deposit Application.
No payroll history to enter and you prefer to pay your employees by check? No problem, go directly to Step 5: Entering Employee Hours.