Payroll compliance isn’t a single task — it’s an ongoing set of obligations. Use this checklist to make sure nothing slips.
? Classify workers correctly. Misclassifying an employee as an independent contractor is one of the most commonly penalized payroll mistakes. The IRS looks at behavioral and financial control, not just what you call the role.
? Register for the right tax accounts. Federal EIN, state income tax withholding account, and state unemployment insurance account, at minimum.
? Follow minimum wage and overtime law. Federal, state, and sometimes city minimum wage laws can differ — you must follow whichever is highest for your location.
? Post required labor law notices. Most states require physical or digital posting of wage and labor law notices, even for remote teams.
? Withhold and remit taxes on schedule. Missing a deposit deadline, even by a day, can trigger penalties.
? File quarterly and annual tax forms. Form 941 quarterly, Form 940 annually, plus W-2s and 1099s by January 31.
? Maintain accurate records. Keep payroll records for at least 4 years, and I-9 forms for 3 years after hire or 1 year after termination, whichever is later.
? Stay current on rate changes. Minimum wage, unemployment tax rates, and benefit contribution limits change — often annually.
Why this checklist is hard to manage manually: rules vary by state, and they change every year. A single missed update can mean under-withholding for months before anyone notices.
How Onyx helps: built-in compliance updates, automatic worker classification prompts, and audit-ready recordkeeping — so this checklist runs itself in the background.
