Federal setup
Enter your EIN and deposit schedule. The IRS assigns you a monthly or semi-weekly schedule based on prior-year liability, and depositing on the wrong cadence draws a penalty even when the amount is right.
State and local accounts
Each state where you have an employee needs its own withholding account, and most need an unemployment insurance account too. Registration can take two to six weeks, so start before your first payroll there.
Until an account number is on file, Payflo calculates and holds the liability rather than filing it. Nothing is lost, but the filing is late if the account is not opened in time.
Unemployment rates
Your SUTA rate is assigned annually and varies by state and claims history. Update it when the notice arrives — the new rate usually applies retroactively to January 1, and Payflo will true up prior runs automatically.
Common mistakes
- Using the FEIN in place of a state withholding number
- Leaving the prior year's SUTA rate in place after a new assessment
- Missing a local jurisdiction, which is common in OH, PA, NY, and KY
- Registering in the company's home state but not the employee's