Creating a payroll with Vagaro Payroll is a process for businesses that have never used payroll software or wish to create a brand new payroll. This process entails that you activate the feature, enter your business's tax information, then onboard your employees with their payroll information. The subscription will begin after the company signatory has provided and submitted their electronic signature on all government forms that Vagaro Payroll will file with the IRS.
After completing the onboarding process for your business, it may take a few minutes to be approved and set up your Vagaro Payroll business account. You will know that you have been approved for Vagaro Payroll, you will see the following changes in these screens:
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At the top of the screen, the green Get Started or In Progress button shows Deactivate instead.
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At the bottom of the Payroll Configuration screen, the Salary tab has been added.
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In every Employee Profile screen, the Payroll tab has been added.
If you are a current Gusto customer, you can migrate your existing Gusto payroll and payroll settings into Vagaro Payroll.
Note
If you use another payroll software, you can import your payroll instead and continue your payroll from where you left off. You will need to import all of your employees' paystub information for the current calendar year to prevent duplicate tax forms.
Prerequisites: This feature requires Vagaro Payroll and is available only to businesses in the US.
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Go to Vagaro Payroll.
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Vagaro Pro App: Go to → → → .
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Web Version: Go to → → .
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Select Get Started.
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In the popup, select → → .
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Carefully read the terms of service, and then select Accept Terms of Service.
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If your business has multiple locations, the Does Your Multi-Location Business Have Single or Multiple Federal EIN's popup will appear.
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If you have a single EIN, select +, choose the locations using that EIN, and then select Activate.
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If you have multiple EINs, select → .
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In the Business Federal Tax Information screen:
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Enter the following information:
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Federal EIN: Your Federal Employer Identification Number. If you don’t have one, apply online.
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Tax Payer Type: Your taxpayer type.
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Federal Filing Form: The federal tax filing form you will use for your payroll. If you need more information about the different filings for payroll, select the IRS website link.
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Legal Business Name: Your business’s legal name.
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Type of Business: The industry type of your business If your business is also an S corporation, also select Taxable as scorp.
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Taxable as scorp: Whether your business is an S corporation that is taxed under Subchapter S of Chapter 1 of the Internal Revenue Code.
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Select Next.
In the Company Bank Account screen:
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Add a bank account used for Payroll, then select Next.
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If you have a bank on file already, select it.
To add a new bank, select Add New Bank Account.
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If you don't have a bank on file, select Add Bank Account
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If you're adding a new bank, select a bank verification method:
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Login to Bank with Plaid: Select Agree, select or search for your bank, and then enter your bank account information. We recommend logging into your bank through Plaid to verify your banking information.
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Manually Enter Bank Details: Enter the bank account information that your payroll will be debited from. Vagaro Payroll will credit two small transactions to that account and debit them again within three days. Check this account regularly for these transactions, and then enter the amounts in the Verify Bank Account screen.
Until those transactions have occurred, you can select Cancel and return later to this screen in the Notification panel and then select the Verify Bank Account.
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Only employees who already have an Employee Profile in Vagaro, including yourself, can be added to your payroll.
To add employees in the Add Employee screen:
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Select Add Employee.
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In the Add Employees To Payroll popup, select the employees to add to payroll, including the business owner, then select Add Employees.
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Select Next.
The information required for this screen will vary depending on the state that the business is located in.
After entering all required information, select Next.
Before you can run payroll, you must set a pay schedule for your employees. The pay schedule can be set to weekly, bi-weekly, twice per month, and monthly.
To pay your employees weekly:
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Under Payroll Frequency, select Weekly.
Additional settings will appear.
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In the Day of Week list, choose the day your employees will receive their pay.
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In the First Pay Date on New Schedule list, choose the first pay date from the calendar.
Once selected, you’ll see the Deadline to Run Payroll appear just below. This is the latest date you can process payroll to ensure your employees get paid on time
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In the First Pay Period End Date list, choose the end date of the last pay period. The system will use this date to calculate future pay periods.
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Select Save.
To pay your employees bi-weekly
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Under Payroll Frequency, select Every Other Week. Additional settings will appear.
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In the Day of Week list, choose the day your employees will receive their pay.
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In the First Pay Date on New Schedule list, choose the first pay date from the calendar.
Once selected, you’ll see the Deadline to Run Payroll appear just below. This is the latest date you can process payroll to ensure your employees get paid on time
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In the First Pay Period End Date list, choose the end date of the last pay period. The system will use this date to calculate future pay periods.
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Select Save.
To pay your employees twice per month:
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Under Payroll Frequency, select Twice Per Month. Additional settings will appear.
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Under Monthly Pay Days, choose an option:
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To pay your employees on the 15th and last day of the month, select 15th and Last Day of Month.
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To choose two specific days, select Other, then select the First Pay Day of Month and Second Pay Day of Month.
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In the First Pay Date on New Schedule list, choose the first pay date from the calendar.
Once selected, you’ll see the Deadline to Run Payroll appear just below. This is the latest date you can process payroll to ensure your employees get paid on time
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In the First Pay Period End Date list, choose the end date of the last pay period. The system will use this date to calculate future pay periods.
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Select Save.
To pay your employees monthly:
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Under Payroll Frequency, select Monthly. Additional settings will appear.
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In the Day of Month list, choose which day your employees will receive their pay.
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In the First Pay Date on New Schedule list, choose the first pay date from the calendar.
Once selected, you’ll see the Deadline to Run Payroll appear just below. This is the latest date you can process payroll to ensure your employees get paid on time
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Select Save.
The company signatory is the person who will be legally responsible and agrees to provide an electronic signature on all government forms that Vagaro Payroll will create and file with the IRS.
To authorize the company signatory:
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In the Confirm Owner's Details screen, enter and verify the following information:
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First Name: The signatory’s first name.
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Last Name: The signatory’s last name.
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Email: The signatory’s email address.
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Phone Number: The signatory’s phone number.
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Birthdate: The signatory’s date of birth.
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Address: The signatory’s mailing address.
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Social Security Number: The signatory’s social security number. An ITIN cannot be used.
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Select Next.
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Carefully review the Direct Deposit & Debit Authorization Form. If the company signatory agrees to the authorization, have them enter their name as their Signature, select the checkbox that You are the signatory and agree to sign electronically, and then select Next.
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Carefully review the Reporting Agent Authorization form, which substitutes for IRS Form 8655 and gives Vagaro Payroll the ability to file forms and make payroll tax deposits on behalf of the company signatory. If this person agrees to the authorization, then enter this person's name as their Signature, select the checkbox that You are the signatory and agree to sign electronically, and then select Finish.
Once you submit your business for Vagaro Payroll, it may take up to three days to be approved to run payroll. Until you are approved, you will see the "In Progress" button in the Vagaro Payroll screen:
When you have been approved, you will see this notification in your Notification panel :
In the meantime, you can continue to set up your payroll by completing the following tasks:
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