📝 Overview
This checklist covers everything you need to complete before processing your first payroll. Work through each section to make sure your account, workers, and payroll history are ready to go.
⚙️ Employer & Account Setup
Confirm the following before moving forward:
All employer onboarding tasks are marked complete
Pay groups, pay codes, benefits, and deductions are established
The Know Your Business (KYB) process is fully approved and documented
Your bank account is verified and active for payroll processing
Tax agency accounts and IDs (if applicable) are confirmed
🛠️ Worker Onboarding
Verify that your worker records are complete and accurate:
All active workers have completed onboarding and are visible in your worker list
Terminated workers have been added to maintain historical accuracy
Worker data has been reviewed for completeness, including: names, SSNs, addresses, pay rates, pay groups, pay codes, benefits, deductions, and PTO balances
📊 Historical Payroll Data
Confirm your historical data is fully imported and verified:
Historical data file is fully built and imported
Import audit is complete and data balances with source reports
Payroll totals, tax balances, and employee counts have been verified against your source documents
❓ Frequently Asked Questions (FAQs)
Find answers to common questions or additional details that may not be covered in the main instructions.
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Click the arrow to view frequently asked questions.
When should I complete this checklist?
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Click the arrow to see the answer.
Complete this checklist before you submit your first payroll run. All items should be resolved in advance. If anything is incomplete, address it first to avoid delays or errors in processing.
What happens if my bank account isn't verified yet?
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If your bank account is not yet verified, you will not be able to process payroll. Make sure verification is complete and the account is active before proceeding.
If you need help with bank account verification, click the link below to explore the Bank Account Verification article.
Do I need to add terminated workers before my first payroll?
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Yes. Adding terminated workers ensures your historical records are accurate and that year-end reporting (such as W-2s) reflects all workers paid during the tax year, even if they are no longer active.
What is the KYB process?
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Know Your Business (KYB) is a verification process used to confirm your company's identity and legitimacy before payroll processing is enabled. Your account cannot go live until KYB is fully approved.
For more details, click the link below to explore the Know Your Business article
What should I do if my historical payroll data doesn't balance?
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If your import audit reveals discrepancies between imported data and your source reports, do not proceed with your first payroll until the issue is resolved. Contact DaySmart Support for assistance.