Skip to content
Subscriber Only

Before You Add an Employee to Payroll

Downloadable software allows you to handle payroll yourself, but for a lot of small businesses, outsourcing the job is the way to go

I own a small used-car dealership and I'm in need of an employee. I've searched online everywhere on how to add an employee to payroll. I don't have payroll for myself; I just pay estimated tax every quarter. Can you give me any advice or a Web site to start with? —J.M., Canton, Ohio

If you don't already have one, you should apply for a federal employer identification number (EIN) from the Internal Revenue Service. You'll also need to apply for a state withholding number for your business and a state unemployment rate and number. Information on these requirements is available for your state online at the Ohio Business Gateway. The site also answers many other questions about running a small business and provides useful links you might explore.