State Tax Setup - An Overview
Last modified 6/18/2020 8:06:56 AM EST | Added by Paywow Team

PayWow will file and pay your withholding and unemployment taxes on your behalf. To do that, you need to provide tax info for the states in which your employees work from the Settings menu. When that’s done, PayWow will debit the taxable wages from your account and pay to the appropriate state agencies.  

So, here’s what you must do to complete state tax setup:

• Set Up State Withholding: Set up state withholding for your business if you have employees with withholding liability. For this, enter the Taxpayer ID, Deposit Schedule, and attach the Certificate of Registration that you would have received. Based on this schedule, PayWow will debit funds and pay to the State.
• Set Up State Unemployment Tax: Provide the Account Number and UI Tax Rate to set up your unemployment tax info. If you haven't received the unemployment account number yet, you can add it later. Whereas, for the UI tax rate, some businesses may receive it after running their first payroll. So, add it once you receive it from the State. Suppose you're operating as a nonprofit organization, you have an option to choose the preferred form of taxation - contributing or reimbursing employer. Also, if the state imposes a change in the unemployment tax rate, add a new tax rate along with the effective date.
• E-Sign Authorization Documents: With all these added, navigate to Compliance >> Authorization Documents to e-sign forms authorizing PayWow to pay and file taxes on your behalf.

You’ll be notified whenever payments or filings are made on your behalf, which you can view under the Compliance menu.

Note: If you receive any tax notices from state agencies on changes in deposit schedules or unemployment tax rates in the future, you'll have to update the changes in PayWow.