Resource CenterThe one idea that explains everything
Government agencies don't let just anyone file taxes or pull money for a business. Before they allow a third party to act for you, they require signed authorizations, proof your business is a real registered entity, proof your EIN matches your exact legal name, and permission to move money from your account to your staff. That's what all the agreements and documents add up to: it protects you, your staff, and the tax agencies from fraud and misfiled taxes.
The exact set varies by your business type and the states you operate in; you may see six or seven. Tourney Direct can't give legal or tax advice, so check with your accountant on a specific form.
The agreements you sign
- Service or platform agreement: the terms for using the payroll service, standard for any software you sign up for.
- Federal reporting agent authorization (IRS Form 8655): the big one. Authorizes the payroll provider to file your federal employment tax returns and deposit withheld taxes with the IRS. Without it, no one can legally file or pay your federal payroll taxes for you, which is why W-2 payroll can't run until it's signed.
- State tax authorizations (a power of attorney or reporting agent form per state): same idea, per state where you have employees. If you have employees in two states, expect two.
- ACH or direct debit authorization: gives the provider permission to pull the exact payroll amount from your account so it can pay staff and remit taxes. This is what lets the money move.
- Third-party payer or payroll service agreement: confirms the provider is acting as your payroll agent and spells out responsibilities on both sides.
- Owner or signer certification: the person completing setup certifies they're authorized to sign for the business and that the information is accurate.
The documents you upload
- EIN confirmation letter (IRS CP-575, or a 147C letter): the IRS matches every payroll filing to the exact legal business name tied to your EIN. Uploading the letter lets the provider confirm your legal name and EIN match, so filings are accepted the first time. If you can't find your CP-575, you can request a 147C replacement from the IRS by phone. See PR-17.
- Articles of Organization or Incorporation (your formation document), W-2 and Both only: proves your business is a real, registered legal entity and confirms your legal structure and who owns it. If you only pay 1099 contractors, you don't need it.
- Bank verification: confirms the funding account is really yours. Connect through Plaid and it's done right away; choose two small test deposits and it takes 1 to 3 business days. See PR-05.
- Possibly requested: a certificate of good standing from your state. The verification team may ask for one. See PR-16 for what it's called and where to order it in each state.
Why the owner is asked for personal details
The primary owner enters their name, date of birth, Social Security number, home address, ownership percentage, and title, and verifies their identity with a photo of a government ID. This is a legal identity check ("know your customer") that financial and payroll providers must perform before moving money for a business. It's all entered on the provider's secure page, not stored by Tourney Direct.