The Payroll Compliance Checklist for Oklahoma Small Businesses

Managing payroll is about more than cutting paychecks — it’s about staying in compliance with both state and federal laws. In Oklahoma, even minor payroll mistakes can lead to audits, penalties, and frustrated employees.

Whether you’re just getting started or looking to tighten up your existing system, this detailed Oklahoma payroll compliance checklist will help you cover your bases and avoid costly issues.

Employer Registration & System Setup

1. Register for Federal and State Payroll Accounts:

• Obtain an Employer Identification Number (EIN) from the IRS
• Register with the Oklahoma Tax Commission (OTC) for withholding tax
• Register with the Oklahoma Employment Security Commission (OESC) for unemployment insurance

2. Choose a Payroll System:

• Use a CPA-led solution like Boulanger CPA to automate filings and track compliance
• Avoid DIY payroll unless you fully understand state-specific rules

3. Determine Payroll Schedule:

• Weekly, biweekly, semi-monthly, or monthly — and stick to it
• Follow Oklahoma’s pay frequency laws

Employee Classification & Documentation

4. Properly Classify Workers:

• W-2 employees vs. 1099 contractors
• Use IRS Common Law test or Form SS-8 if unclear
• Misclassification = back taxes and penalties (Learn more here)

5. Collect Required Forms:

• W-4 for employees
• I-9 for employment eligibility
• Oklahoma W-4 (state withholding form)

6. Maintain Employee Records:

• SSNs, addresses, compensation agreements
• PTO balances, hours worked, and rate changes
• Keep records for at least 3 years (OESC rule)

Withholdings, Deposits & Filings

7. Withhold Correct Amounts:

• Federal: Income tax, Social Security, Medicare
• State: Income tax (based on OK W-4)

8. Submit Payroll Tax Deposits On Time:

• Federal: EFTPS semiweekly or monthly, depending on size
• State: OTC and OESC deadlines — typically monthly or quarterly
• Missed payments = penalties, interest, and loss of deductions

9. File Required Returns:

• Federal:
• Form 941 (quarterly)
• Form 940 (annually)
• State:
• OTC withholding return
• OESC unemployment return

Need help with this process? See how we handle it all for you »

Year-End Reporting and Reconciliation

10. Prepare and Deliver W-2s and 1099s:

• Must be issued by January 31 to employees and contractors
• File W-2s with SSA and 1099s with IRS and Oklahoma Tax Commission

11. Reconcile Payroll Records:

• Match totals from payroll reports with Forms 941/940, OTC and OESC filings
• Resolve any discrepancies before year-end close

12. Confirm Employee Data:

• Name, SSN, address updates
• Double-check benefit elections and tax withholdings

Optional: Integrate Payroll With HR & HCM

For growing businesses, payroll should connect to:

• Time tracking and PTO systems
• Benefits enrollment (401k, health insurance, dental, vision)
• New hire onboarding and separation workflows
• Full HCM solutions like iSolved, used by Boulanger CPA

Ready to Make Payroll Compliance Easy?

This checklist gives you a solid foundation — but we can take it further. At Boulanger CPA, we handle all your payroll filings, deadlines, and year-end reporting, backed by a licensed CPA.

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Frequently Asked Questions