The Payroll Setup Checklist for New Oklahoma Employers

The Payroll Setup Checklist for New Oklahoma Employers

Hiring your first employee in Oklahoma? Whether you're launching a startup, expanding a side hustle, or growing your team for the first time, setting up payroll correctly is essential.

From IRS registration to state-level compliance, there are several steps Oklahoma employers must take to stay legal — and avoid costly penalties.

In this guide, we’ll walk you through a CPA-approved checklist to get your payroll system running right the first time.

Step 1: Get an Employer Identification Number (EIN)

Before you can pay employees, you need an EIN from the IRS.

• Apply online at irs.gov
• It’s free and usually issued immediately
• You’ll use this on all tax forms, payroll returns, and W-2s

Already have an EIN from your LLC or business registration? You can use the same one.

Step 2: Register With the Oklahoma Tax Commission (OTC)

Next, register for a state withholding tax account with the OTC.

• Visit oktap.tax.ok.gov to register
• You’ll receive an account number for state income tax withholding
• Required for all businesses that pay wages to Oklahoma residents

Important:

If you withhold state tax but don’t register, you could face penalties and interest.

Step 3: Register With the Oklahoma Employment Security Commission (OESC)

This is for your unemployment insurance account, required for all Oklahoma employers.

• Go to oesc.ok.gov
• Create an account and file your business registration
• You’ll get a rate and wage base limit

OESC returns are filed quarterly — typically due one month after each calendar quarter ends.

Need help filing with OESC? We manage this for all our payroll clients »

Step 4: Choose Your Pay Schedule

Oklahoma allows employers to choose how often they pay workers, but you must be consistent.

Common pay frequencies:

• Weekly
• Biweekly (every 2 weeks)
• Semi-monthly (15th and last day)
• Monthly

We recommend biweekly or semi-monthly to balance compliance and simplicity.

You’ll also need to determine your payday rules and communicate them to employees in writing.

Step 5: Set Up Payroll Software or Work With a Provider

Now that you’re registered with the IRS, OTC, and OESC — you need to process payroll accurately.

You have two options:

Option 1: DIY Payroll Software (Gusto, QuickBooks, etc.)

Pros:

• Affordable for very small teams
• Simple user interface

Cons:

• Doesn’t always file state forms correctly
• No CPA oversight
• Limited help with S corp compliance or tax strategy

Option 2: CPA-Led Payroll System (Like Ours)

Pros:

• We file all IRS, OTC, and OESC forms for you
• We ensure payroll ties to your accounting and tax plan
• Includes full support for new hire reporting, PTO, time tracking, and more

Learn about our CPA-led payroll services »

Step 6: Collect New Hire Forms

Every employee needs to complete:

• Form W-4 (federal income tax withholding)
• OK-W-4 (Oklahoma state withholding)
• Form I-9 (employment eligibility verification)

Also:

• Set up direct deposit forms
• Provide an employee handbook or policies
• Collect emergency contact info

With our HCM system, all of this can be done digitally.

Step 7: Set Up Payroll Tax Deposits and Returns

Federal:

• Deposit taxes using EFTPS (Electronic Federal Tax Payment System)
• File Form 941 quarterly and Form 940 annually

State:

• File monthly or quarterly withholding returns via OTC
• File unemployment reports (OES-3) via OESC

Late or missed deposits = penalties + interest.

We automate all of this for our clients.

Step 8: Issue W-2s and File Year-End Forms

By January 31, you must:

• Distribute W-2s to all employees
• File W-2 copies with the SSA and Oklahoma Tax Commission

Your payroll system should also file:

• Form W-3 (transmittal)
• 1099s for contractors (if applicable)

CPA firms like ours double-check W-2 totals against your 941s to avoid errors and IRS notices.

Bonus: Stay Compliant With Ongoing Changes

Oklahoma updates its wage base, tax rates, and filing rules regularly. The IRS changes forms and guidance annually.

We keep you compliant with:

• Quarterly filing reminders
• Updated tax tables
• Ongoing CPA review

Subscribe to our Payroll Compliance Alerts »

FAQs – Setting Up Payroll in Oklahoma

Q: Can I pay employees under the table to avoid taxes?
No — it’s illegal and creates serious liability.

Q: Do I need to file if I only have contractors?
Yes — you may still need to issue 1099s and track certain tax responsibilities.

Q: Can I run payroll manually?
Yes, but it’s risky. Most manual payroll setups result in penalties, especially with state filings.

Q: What if I hired employees before registering?
Get compliant ASAP. We help backdate registrations and file past-due forms.

Q: Do I need a CPA or can I just use QuickBooks Payroll?
Most small businesses benefit from CPA oversight — especially S corps or those with multi-state, tipped, or seasonal workers.

Let’s Get Your Payroll Set Up Right

At Boulanger CPA, we help Oklahoma business owners simplify payroll, stay compliant, and focus on what they do best.

Schedule a Free Payroll Setup Call 
See Our Per-Employee Payroll Pricing

Serving Oklahoma City, Norman, Tulsa, Moore, Edmond, and small businesses across the state.