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How to add and pay W-2 employees in Relay Payroll

NEW: Relay Payroll is available by invitation while it's in beta. Adding your W-2 employees is part of setting up your team.

To add a W-2 employee to Relay Payroll, enter their full name, date of birth, Social Security number (SSN), home address, hire date, work address, and compensation. Your employee completes their own W-4. Once they're added, you pay them by running payroll.

What you'll need

For each W-2 employee, have these details ready. In the beta, you enter them yourself.

  • Their full name.

  • Their date of birth.

  • A valid Social Security number (SSN).

  • Their home address.

  • Their hire date.

  • Their work address.

  • Their compensation whether they're salaried or paid hourly, the amount, and how often you pay them.

  • Their W-4 details (your employee completes their own W-4 see below).

How to add a W-2 employee

  1. Open payroll in Relay and choose to add a team member.

  2. Choose to add a W-2 employee.

  3. Enter your employee's basics: full name, hire date, and work address.

  4. Enter their compensation salaried or hourly, the amount, and how often you pay them.

  5. Enter their personal details: date of birth, Social Security number (SSN), and home address.

  6. Add their W-4 details so their federal withholdings are set up.

  7. Save the employee.

Once your employee is set up, you pay them by running payroll Relay pulls the funds from your Relay account. See How to run your first payroll in Relay for the steps.

FYI: Your employees complete their own W-4 and choose their own withholdings that's their responsibility, not yours, and Relay can't give tax advice. If an employee isn't sure how to complete their W-4, they can consult a tax professional or use the IRS withholding estimator (https://www.irs.gov/individuals/tax-withholding-estimator).

If something goes wrong

Two things commonly hold up adding an employee. Here's how to handle them:

  • Invalid SSN. Employees must have a valid Social Security number. An ITIN or other number can prevent W-2s and payroll tax returns from filing successfully, so double-check the SSN you entered.

  • Employee in another state. The beta is same-state every employee works in the state your business operates in. A remote employee's home address counts as their work address, so if that home is in a different state, that isn't supported during the beta.


Frequently Asked Questions

What information do I need to add an employee?

For each W-2 employee, you'll need their full name, date of birth, a valid Social Security number (SSN), home address, hire date, work address, and compensation (whether they're salaried or paid hourly, the amount, and how often you pay them). You'll also add their W-4 details, which your employee completes.

Who fills out the W-4?

Your employee does. Employees complete their own W-4 and choose their own withholdings Relay can't give tax advice. If an employee isn't sure how, they can consult a tax professional or use the IRS withholding estimator.

Can I add an employee who works in another state?

Not during the beta. Relay Payroll currently supports teams where every employee works in the same state as your business. A remote employee's home address counts as their work address, so if that home is in a different state, it isn't available during the beta.

Talk to our Customer Experience team

If this article did not fully answer your question, our Customer Experience team is here to help.

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Relay is a financial technology company and is not an FDIC-insured bank. Banking services provided by Thread Bank, Member FDIC.