Payroll compliance checks

Every payroll checked against 14 laws before anyone is paid.

StartEase checks every payroll against 14 federal and state rules before it can be approved. When the law says no, the payroll stops and you see why, with the law cited.

Book a 30-minute meeting See how a notice is handled

Minimum wage
Exempt status
Unemployment rates
State income tax
Form W-4
Employee or contractor
Work state

How it works

The platform reads the payroll, and gives you the error.

The checks are not a report you read afterwards. They sit in the path of every payroll.

Step 1The payroll is preparedPay, hours, states, forms and rates are read from your company's setup.
Step 2The platform checks itFourteen checks: wages, tax rates, forms and workers, and the state rules.
Step 3A failed check stops itIt cannot be sent or approved. The message names the person, the rule and the law, with links to the government sources.
Step 4You fix it and send it againThe setup is corrected and the payroll is sent again. Then the employer approves it.

Checked at three pointsWhen it is preparedWhen it is sentWhen the employer approves

What we ask at signup

The checks are only as good as the facts. So we ask for all of them.

When you sign up, we collect the company details and the state registrations that every check reads from. You enter them once. The platform lists what is still missing, and a missing unemployment rate blocks payroll approval. The screens below show a sample company with sample data.

Business identityWho the company isFederal tax setupHow federal tax is paidState registrationEach state you pay in

Business identity

Legal name, entity type, FEIN, where and when it was formed, industry code, and the IRS EIN letter and formation certificate.

Federal tax setup

Deposit schedule, which federal return you file, who makes the federal deposits, and workers' compensation.

State registration

For every state where you have employees: registration status, withholding and unemployment account numbers, and the assigned rate. What is still missing is listed at the top, and the rate is marked as blocking payroll approval.

What the platform checks

Fourteen checks. Each tied to a law.

Every payroll is checked when it is prepared, when it is sent, and when the employer approves. A failed check stops the payroll and says why.

Checks 1–4

Wages

Stops pay that is below the legal minimum, or an exempt label that does not hold.

29 U.S.C. §§ 203, 206, 213

1Minimum wageStops payroll when pay is below the highest minimum wage that applies.

2Wage table gapStops payroll when no minimum wage is on file for the pay date.

3Tipped payStops payroll when cash wages plus tips do not reach the full minimum wage.

4Exempt statusStops payroll when an exempt employee does not meet the salary or duties test.

Checks 5–9

Tax rates

Stops tax from being calculated on a rate that is missing, old or expired.

26 U.S.C. §§ 3301–3302; state law

5Unemployment rateStops payroll when a state unemployment rate has not been entered.

6New-year rateStops payroll in a new year until that year's rate is entered.

7Temporary rate endedStops payroll when a temporary rate has run out.

8Stale calculationStops a payroll that was calculated before the rate was entered.

9State income tax rateStops payroll when a state that taxes income has no withholding rate.

Checks 10–11

Forms and workers

Stops payroll until the paperwork matches how the person is paid.

26 U.S.C. § 3402(f); 26 CFR § 31.3121(d)-1

10Form W-4Stops payroll until each employee's W-4 is approved, unless none was received.

11Employee or contractorStops payroll when the same person is entered as an employee and a contractor.

Checks 12–14

People and places

Stops payroll until the state and the company size are known.

State laws; a person confirms

12Work stateStops payroll when an employee has no work state.

13Two statesStops payroll until a person confirms state tax for someone who lives and works in different states.

14Company sizeStops payroll when a state sick leave rule depends on company size and the size is not entered.

Read each check, with its legal basis and government links, in the help center →

What a stop looks like

The platform explains every stop, and cites the law.

A payroll below the legal minimum, in a sample company. This is what the employer sees.

Blocked payroll: pay below the legal minimum wage, with the reason and the law cited

1What is wrongPay is below the legal minimum. The payroll cannot be sent.
2Why it is blockedThe highest of the federal, state and local minimum applies to every hour worked.
3What the law says29 U.S.C. § 206(a)(1)(C) and Tex. Lab. Code § 62.051, with links to the government sources.
4What happens nextThe payroll team corrects the pay and sends it again.

What is due, and when.

Each item has a due date and a status. Weekend and holiday dates move to the next business day.

UpcomingDue soonOverdueFiled

With every payroll

Federal tax deposits15th of next month, or the next Wednesday or FridayMonthly or semiweekly, by your schedule

Every quarter

Form 941Apr 30, Jul 31, Oct 31, Jan 31About 10 more days if every deposit was on time

State unemployment reportsEach quarterDates are set by each state

Every January

Forms 940, W-2, W-3, 1099-NECJan 31Year end

When you hire

New-hire reportWithin days of the hire dateThe state sets the limit (Texas: 20 days)

Form I-9, Section 23 business days after the start dateKept by the employer, not filed

Questions

Payroll compliance questions.

What does StartEase check before each payroll?

Fourteen rules in four groups. Wages: minimum wage, a missing wage table, tipped pay and exempt status. Tax rates: the state unemployment rate, the new-year rate, an expired temporary rate, a payroll calculated before the rate was entered, and the state income tax rate. Forms and workers: an approved Form W-4, and the same person entered as an employee and a contractor. People and places: the work state, employees who live and work in different states, and the company size for state sick leave.

What happens when a payroll fails a check?

The payroll stops. It cannot be sent or approved. The message names the person, the rule and the law, with links to the government sources. You fix the setup and send the payroll again, then the employer approves it.

When are the checks run?

Three times: when the payroll is prepared, when it is sent, and when the employer approves it.

Which laws are the checks based on?

The wage checks follow the Fair Labor Standards Act (29 U.S.C. §§ 203, 206 and 213). The tax rate checks follow federal unemployment tax law (26 U.S.C. §§ 3301–3302) and state law. The form checks follow 26 U.S.C. § 3402(f) for Form W-4 and 26 CFR § 31.3121(d)-1 for who is an employee. The work-state and company-size checks follow state law. Each check is explained, with its government source, in the help center.

Does StartEase give legal advice?

No. The checks stop a payroll that breaks a rule and show the law behind it. For legal or HR advice, talk to an attorney or a licensed professional.

Thirty minutes, and you will know where you stand.

We go through your states, your employees, and what a first payroll looks like.

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