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Run the Payroll Fee Auditor →Blog · Payroll Management · Auto Dealership
Auto Dealerships: New Hire Payroll Onboarding (2026)
New hire payroll onboarding at an auto dealership is the W-4, the Form I-9 within three business days, new hire reporting inside the state deadline, the pay code for the role, and the auto dealership checks this page cites before the first shift. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
Checks specific to hiring in auto dealerships
No dealership employee under 18 may drive or serve as an outside helper on a motor vehicle on a public road, except that 17-year-olds who meet specific requirements may drive vehicles that do not exceed 6,000 pounds gross vehicle weight for limited amounts of time. Minors under 16 may work only during particular times and limited hours, and minors under 14 may not be employed.
The federal onboarding sequence
Form W-4 (and the state equivalent) before the first check; Form I-9 section 1 on day one and section 2 within three business days; the new hire report to the state directory within its deadline, federal default 20 days and shorter in several states; the pay code, exemption status and direct deposit authorization on the employee record; and for salespeople and finance managers the pay basis documented so front-end and back-end commission structures is taxed and counted for overtime correctly from the first run.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- No dealership employee under 18 may drive or serve as an outside helper on a motor vehicle on a public road, except that 17-year-olds who meet specific requirements may drive vehicles that do not exceed 6,000 pounds gross vehicle weight for limited amounts of time. Minors under 16 may work only during particular times and limited hours, and minors under 14 may not be employed. [DOL Fact Sheet #11]
Read the full guide to how to onboard a new employee in payroll, and the rest of the auto dealership payroll library.
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Frequently Asked Questions
Hiring at an auto dealership: DOL Fact Sheet #11
No dealership employee under 18 may drive or serve as an outside helper on a motor vehicle on a public road, except that 17-year-olds who meet specific requirements may drive vehicles that do not exceed 6,000 pounds gross vehicle weight for limited amounts of time. Minors under 16 may work only during particular times and limited hours, and minors under 14 may not be employed.
How fast must an auto dealership report a new hire?
Within the state's deadline, 20 days under the federal default and as short as 7 days in some states. The report goes to the state new hire directory, and a rehire after 60 days is reported again.
What does managed payroll cost for an auto dealership?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Front-end and back-end commission structures, flat-rate tech pay and F&I chargebacks are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Auto Dealerships. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
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