Employer profile
- ☐ Legal business name and DBA if relevant.
- ☐ EIN and business address.
- ☐ Primary payroll contact and approver.
- ☐ States/localities where employees work.
- ☐ Banking/payment workflow owner—without collecting unnecessary bank credentials in ordinary working papers.
- ☐ Payroll-tax accounts/providers already in use.
Employee profile
- ☐ Employee name and internal identifier.
- ☐ Work location and classification.
- ☐ Hourly rate or salary basis.
- ☐ Normal schedule/workweek where relevant.
- ☐ Current Form W-4 information.
- ☐ State/local withholding setup.
- ☐ Authorized deductions and benefits.
- ☐ Opening year-to-date balances if onboarding midyear.
Worker classification deserves its own review. The IRS emphasizes that the substance of the relationship—not the label used by the parties—controls employee-versus-contractor status.
Prior payroll records
If the client is changing systems or bookkeepers midyear, do not start with zeroed YTD balances unless that is actually correct. Obtain the most recent completed payroll register, employee YTD records, and relevant tax filings or provider reports. Tie opening balances to a reliable source before the first new run.
Pay schedule and cutoff rules
- ☐ Pay frequency.
- ☐ Pay-period start/end.
- ☐ Pay date.
- ☐ Time-entry cutoff.
- ☐ Bonus/commission cutoff.
- ☐ Process for late changes.
- ☐ Approval deadline.
Define responsibilities in writing
Document who prepares payroll, who reviews it, who authorizes wage payments, who makes federal/state tax deposits, who files Forms 941/940 and state returns, and who handles W-2/W-3 reporting. If a third party is involved, document the actual authorization and role rather than assuming responsibility shifted automatically.
Set the handoff format
Agree on what the client and bookkeeper will retain after each run: payroll register, funds summary, employee statements, structured data, approval evidence, and exception notes. Consistency is especially valuable when the client has only a few employees because the workflow should be repeatable with minimal overhead.
Data handling and access
Payroll contains sensitive information. Decide where files will be stored, who can access them, how backups are handled, and how former employees or former staff lose access. Avoid moving sensitive information into more systems than the engagement actually needs.
Quick FAQ
What is the biggest risk in midyear onboarding?
Incorrect opening YTD balances. They affect later payroll statements, tax reconciliations, and year-end reporting, so tie them to a completed prior record.
Should the bookkeeper collect Form I-9?
I-9 is an employer employment-eligibility record with specific handling and retention rules. Whether the bookkeeper handles it depends on the engagement. Do not treat it as ordinary payroll data by default.
Should payroll onboarding include tax-filing credentials?
Only if the engagement actually requires authorized filing or payment access. Collect the minimum access necessary and document who is authorized to use it.
LeoFolio pathway
Working with recurring small-business clients? Explore LeoFolio for Bookkeepers and the Pay Run workflow for reviewed payroll records and structured handoff files.
Source notes for editorial verification
- IRS — Outsourcing payroll and third-party payers
- IRS Topic 753 — Form W-4, Employee’s Withholding Certificate
- USCIS — Form I-9 instructions
- IRS — Employment tax recordkeeping
- IRS — Independent contractor (self-employed) or employee?