> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pluvel.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Add your first employee

> Set up an employee in Pluvel for payroll.

Hiring your first employee is exciting. The paperwork that comes with it is not.

There's the W-4, the I-9, state tax forms, direct deposit setup, and a dozen fields where one typo means a tax filing problem six months from now. This guide walks you through adding an employee correctly — so payday goes smoothly and tax season doesn't become a nightmare.

## Before you start

You need paperwork from the employee. Don't skip this part:

| Form                    | What it's for                                        | Where to get it                         |
| ----------------------- | ---------------------------------------------------- | --------------------------------------- |
| **W-4**                 | Federal tax withholding elections                    | Employee fills out (available from IRS) |
| **State W-4**           | State tax withholding (if your state has income tax) | Employee fills out                      |
| **I-9**                 | Proves they're authorized to work in the US          | You and employee complete together      |
| **Direct deposit form** | Bank account details for payment                     | Employee provides                       |

You can collect these on paper or have the employee complete them digitally through Pluvel's self-service onboarding (more on that below).

## Add the employee

<Steps>
  <Step title="Go to Payroll">
    Click **Payroll** in the sidebar, then **Employees**.
  </Step>

  <Step title="Click Add Employee">
    Hit the **Add Employee** button.
  </Step>

  <Step title="Enter their information">
    The basics:

    * **Full legal name** — Exactly as it appears on their Social Security card. "Mike" on their SS card? Enter "Mike," not "Michael."
    * **Email address** — Where pay stubs and tax forms will be sent
    * **Date of birth** — Required for tax filing
    * **Social Security Number** — Required (no exceptions)
    * **Home address** — Affects state tax calculations

    Double-check the SSN. One wrong digit causes IRS matching failures. It's the most common payroll setup mistake.
  </Step>

  <Step title="Set employment details">
    * **Start date** — Their first day of work
    * **Job title** — For your records
    * **Department** — Optional, helps with reporting
    * **Work location** — Where they primarily work (this determines which state taxes apply)
  </Step>

  <Step title="Set up compensation">
    **Pay type:**

    * **Salary** — Fixed amount regardless of hours (you enter annual amount)
    * **Hourly** — Rate per hour (you enter hourly rate)

    **Pay schedule:**

    * Weekly (52 pay periods/year)
    * Bi-weekly (26 pay periods/year)
    * Semi-monthly (24 pay periods/year — 1st and 15th)
    * Monthly (12 pay periods/year)

    Bi-weekly is most common. Semi-monthly is easier for salaried employees. Monthly is uncommon and some states restrict it.
  </Step>

  <Step title="Enter tax withholding">
    This comes from their W-4:

    * **Filing status** — Single, Married Filing Jointly, Head of Household
    * **Multiple jobs checkbox** — If they have other jobs
    * **Dependents** — For additional withholding credits
    * **Extra withholding** — Any additional amount they requested

    For states with income tax, enter the state W-4 info too. Each state's form is slightly different.
  </Step>

  <Step title="Set up direct deposit">
    Most employees want direct deposit:

    * **Bank name**
    * **Routing number** (9 digits)
    * **Account number**
    * **Account type** — Checking or Savings

    Employees can split deposits across multiple accounts (e.g., 80% to checking, 20% to savings). Add more accounts if needed.
  </Step>

  <Step title="Add deductions (optional)">
    If they have recurring deductions:

    * Health insurance premiums
    * 401(k) contributions (percentage or flat amount)
    * HSA contributions
    * Other pre-tax or post-tax deductions

    These get subtracted automatically each payroll.
  </Step>

  <Step title="Save">
    Click **Save**. The employee is ready for payroll.
  </Step>
</Steps>

## Let employees onboard themselves

Instead of entering everything manually:

1. Add the employee's name and email
2. Click **Send Invite**
3. They receive an email with a link
4. They complete:
   * Personal information
   * W-4 (with digital signature)
   * State tax forms
   * Direct deposit setup

This saves you data entry and puts the responsibility on the right person. They know their SSN and bank account — you're just asking for typos if you're the one entering it.

## Make sure your company is set up

Before you can actually run payroll, verify your company setup in **Settings → Payroll**:

| Requirement              | Why it matters                                     |
| ------------------------ | -------------------------------------------------- |
| **EIN (Federal Tax ID)** | Required for all federal tax filings               |
| **State tax IDs**        | Required for each state where employees work       |
| **Payroll bank account** | The account we debit for payroll                   |
| **Workers' comp**        | Required by most states — fines for non-compliance |

If any of these are missing, you'll get a warning before you can run payroll.

## Employee vs. contractor

Quick gut check: is this person actually an employee?

**Employee (W-2):**

* You control how, when, and where they work
* They use your equipment and tools
* You provide training
* They work only (or mostly) for you

**Contractor (1099):**

* They control how the work gets done
* They use their own tools
* They have other clients
* They could profit or lose money on the engagement

Misclassifying employees as contractors triggers IRS penalties, back taxes, and state labor law violations. When in doubt, they're probably an employee.

[Add a contractor instead →](/guides/payroll/add-contractor)

## Updating employee information

Things change — addresses, bank accounts, tax elections:

1. Go to **Payroll → Employees**
2. Click on the employee
3. Edit the relevant section
4. Save

Changes to tax withholding take effect on the next payroll. Changes to bank accounts typically need one pay period to verify.

## When someone leaves

When an employee's time ends:

1. Open their employee record
2. Click **Actions → Terminate**
3. Enter:
   * Last day of work
   * Termination reason (for your records)
   * Whether they get a final paycheck
4. Run the final payroll if applicable

The employee record gets archived — you can still access it for tax forms and records, but they won't appear on future payrolls.

<Info>
  Some states have strict final paycheck timing requirements (California: same day if fired, 72 hours if quit). Know your state's rules.
</Info>

## Frequently asked questions

<AccordionGroup>
  <Accordion title="What if they don't have an SSN yet?">
    New hires who've applied for an SSN but haven't received it can use their ITIN temporarily. But they need an SSN eventually for proper tax reporting. Don't let this linger.
  </Accordion>

  <Accordion title="Do I need to run a background check?">
    Pluvel doesn't handle background checks. If you want one, use a third-party service before adding them to payroll. It's separate from the payroll process.
  </Accordion>

  <Accordion title="Can employees see their pay stubs?">
    Yes. If you invite them to Pluvel, they can:

    * View all pay stubs
    * Download W-2s at tax time
    * Update their address and direct deposit
    * Adjust W-4 withholdings

    They can't see other employees' information or company-level data.
  </Accordion>

  <Accordion title="How do I handle benefits?">
    Set up benefit deductions in the employee's profile (step 8 above). The amount gets deducted each paycheck automatically.

    For actual benefits administration (enrolling in plans, managing carriers), you'll need a separate benefits provider or integration.
  </Accordion>

  <Accordion title="What about remote employees in other states?">
    Their work location determines which state taxes apply. You'll need:

    * State tax ID for their state (if you don't already have one)
    * Compliance with their state's labor laws
    * State unemployment insurance registration

    Pluvel handles the multi-state tax calculations once you're registered.
  </Accordion>
</AccordionGroup>

## What's next

<CardGroup cols={2}>
  <Card title="Run payroll" icon="money-check-dollar" href="/guides/payroll/run-payroll">
    Process your first payroll.
  </Card>

  <Card title="Set up direct deposit" icon="building-columns" href="/features/payroll/direct-deposit">
    Configure how and when employees get paid.
  </Card>
</CardGroup>