Hiring new employees is exciting, but it also comes with a plenty of paperwork. Staying compliant with all the federal and state regulations can feel overwhelming. This blog post aims to demystify the process and guide you through the essential legal requirements for navigating new hire paperwork in the US.
Key Forms and Deadlines:
- Form I-9: This form verifies an employee’s eligibility to work in the US. Completion Deadline: You must complete the I-9 within three business days of the employee’s start date.
- Form W-4: This form collects information for federal income tax withholding. Completion Deadline: Employees should complete the W-4 before their first paycheck.
- State Tax Withholding Form: Most states require a separate form for state income tax. Completion Deadline: Varies by state, but typically due with the first paycheck.
- Direct Deposit Form: This form allows for electronic wage payments. Completion Deadline: No strict deadline, but ideally before the first paycheck.
Storing New Hire Paperwork:
- I-9: You must retain the completed I-9 form for three years after the employee’s employment ends or one year after their termination date, whichever is later.
- W-4: Keep the W-4 for four years after the employee leaves.
- State Tax Withholding Forms: Retention periods vary by state, so consult your state’s specific guidelines.
Additional Considerations:
- E-Verify: Many states require employers to electronically verify their employees’ work authorization using the E-Verify system. Check your state’s requirements.
- New Hire Reporting: Most states require employers to report new hires to a central registry within a specific timeframe (usually 20 days). Capital Payroll takes care of this step for you.
- Other Policies: You may have internal policies requiring completion of additional forms, like benefits enrollment or emergency contact information.
Pro-Tips:
- Streamline the process: Capital Payroll’s fully digital employee onboarding allows your employees to complete these processes and eSign their documents online. Our system also saves the paperwork in their employee profile so you can stay compliant, and not worry about filling a space consuming (and unsecure) filing cabinet!
- Educate employees: Provide clear instructions and deadlines for completing paperwork.
- Seek professional help: Consult with Capital Payroll if you have complex questions or need further guidance navigating new hire paperwork.
