Bookkeeping and accounting services for small businesses in Jacksonville, the First Coast, and Northeast Florida.

Call or Text: (904) 203-8026

How do I set up payroll for my first employee?

The good news if you’re hiring in Florida is that there’s no state income tax. That eliminates an entire layer of withholding and filing that employers in most other states have to deal with. But you still have several federal and state requirements to handle before that first paycheck goes out.

Get a federal Employer Identification Number if you don’t already have one. You need this before you can do anything else related to payroll. Apply on the IRS website and you’ll receive it immediately. This number is how the IRS tracks your business’s tax obligations as an employer.

Register with the Florida Department of Revenue for reemployment tax, which is Florida’s version of unemployment tax. You pay this as the employer and it’s not withheld from the employee’s wages. Rates vary based on your industry and claims history, but new employers get an initial rate. File and pay quarterly.

Report your new hire to the Florida New Hire Reporting Center within 20 days of their start date. This is a federal requirement administered at the state level. It helps enforce child support orders and detect fraud. It only takes a few minutes but forgetting it can result in penalties.

Get workers’ compensation insurance. Florida requires it for construction businesses with one or more employees and for non-construction businesses with four or more employees. Even if you’re not legally required to carry it yet, having coverage protects you from liability if someone gets hurt on the job. Talk to an insurance agent about your specific situation.

Have your employee complete a W-4 for federal withholding and an I-9 to verify employment eligibility. The W-4 determines how much federal income tax you withhold from each paycheck. Get these filled out before the first day of work, not after.

Choose how you’ll process payroll. Software like Gusto or QuickBooks Payroll handles tax calculations, direct deposits, and quarterly filings automatically. Running payroll manually is possible but risky because miscalculating withholding or missing a deposit deadline triggers penalties quickly. Payroll system setup and training is worth considering if you want to run payroll yourself but need the system configured correctly from the start.

Understand your deposit schedule. Federal payroll taxes including the employee’s withheld income tax, Social Security, and Medicare plus your employer match need to be deposited on time. New employers typically deposit monthly, but as your payroll grows, the IRS may require semi-weekly deposits. Late deposits are one of the most common and expensive payroll mistakes small businesses make.

File Form 941 with the IRS every quarter to report wages paid and taxes withheld. Florida reemployment tax also files quarterly. At year end, you’ll need to issue a W-2 to your employee and file W-3 with the Social Security Administration.

The setup process is manageable but the ongoing compliance is where most first-time employers run into trouble. Missing a quarterly filing or miscalculating a tax deposit creates penalties that add up fast. If you’re already juggling everything else that comes with running a business, getting professional help with bookkeeping services in Jacksonville FL ensures your payroll stays accurate and your filings stay on schedule from the beginning.

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More Questions

Are there financial benefits or programs for veteran-owned businesses?

Yes. Veterans can access SBA loan programs with favorable terms, government contracting set-asides through SDVOSB certification, and various grants and state-level resources. Clean financial records are essential to qualify for most of these programs.

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What bookkeeping does a farming or agricultural business need?

Farm bookkeeping goes beyond basic income and expenses. You need to track seasonal cash flow, equipment depreciation, inventory like livestock and crops, government program payments, and production costs per acre or per head to actually understand profitability.

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What bookkeeping should a veteran-owned business set up from the start?

The same foundation every small business needs, plus a few extras. Clean books from day one make SDVOSB certification, government contracting, and SBA loan applications much easier down the road.

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Should I offer payment terms to my customers?

It depends on your industry, customer type, and cash reserves. Payment terms can help you win larger accounts and stay competitive, but they also create cash flow gaps that you need to plan for.

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How can better bookkeeping improve my cash flow?

Accurate bookkeeping shows you exactly where money is going, who owes you, and when shortfalls are coming. That visibility lets you make decisions that keep cash available instead of constantly reacting to surprises.

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What's the difference between accounts payable and accounts receivable?

Accounts payable is money your business owes to others. Accounts receivable is money others owe to your business. Together they give you a clear picture of your cash flow and financial obligations.

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Veteran-owned bookkeeping firm serving small businesses in Jacksonville and across Northeast Florida. From catch-up bookkeeping to full monthly service, we help owners get their finances in order and keep them that way. QBO ProAdvisor Advanced certified with over 10 years of accounting experience.

Location

4720 Salisbury Rd, Jacksonville, FL 32256

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