Complete Guide to Hiring Employees:
Federal and State Requirements for New Hires

Everything you need to hire someone

Introduction

Hiring new employees involves several crucial steps to ensure federal and state regulations compliance. This guide provides an overview of the required forms, best practices, and resources to help employers navigate the hiring process efficiently.

Form I-9: Employment Eligibility Verification

Purpose: Verify the identity and employment authorization of individuals hired in the United States.

  1. Instructions:

    1. Employee: Complete Section 1 by the first day of work.

    2. Employer: Review documents and complete Section 2 by the third day.

    3. Reverification: Use Section 3 for rehires or when work authorization documents expire.

  2. Link: USCIS I-9 Central

Form W-4: Employee's Withholding Certificate

Purpose: Determine the amount of federal income tax to withhold from an employee's paycheck.

  1. Instructions:

    1. Employees complete the form and submit it to their employer.

    2. Employers use the form to calculate withholding taxes.

  2. Link: IRS Form W-4

Form W-2: Wage and Tax Statement

Purpose: Report wages paid to employees and the taxes withheld.

  • Instructions:

    1. Employers complete this form at the end of the year.

    2. Provide copies to employees and the Social Security Administration.

  • More Info: IRS Form W-2

State-Specific Requirements

State Tax Withholding Forms

  • Each state has its own tax withholding form. Here are a few examples:

  • Find Your State’s Form: Search “[State Name] tax withholding form” for specific links.

New Hire Reporting Forms

Common Questions and Answers

What happens if employees do not complete Section 1 on their first day?

Failure to complete Section 1 on the first day can lead to non-compliance issues and potential penalties. Ensure new hires fill out this section promptly.

Can I keep copies of the documents employees provide?

Yes, but it’s not required by law. Copies must be kept securely and separate from other employee files if you choose to keep copies.

Best Practices for Employers

Record Keeping

  • Store forms securely and compliantly, separate from other personnel records.

Compliance

  • Conduct regular training for HR staff on compliance issues and updates.

Audit Preparation

  • Maintain organized records and be prepared for potential audits by familiarizing yourself with the process.

Additional Resources

  1. U.S. Department of Labor: DOL New Hire Reporting

  2. Small Business Administration (SBA): New Hire Forms and Reporting Requirements

  3. Federation of Tax Administrators (FTA): State Tax Agencies

Ensuring you have the correct forms and follow state-specific requirements allows you to smoothly onboard new employees and remain compliant with all legal obligations.

State Labor and Revenue Departments

Here is a list of the labor or revenue departments for each US state where you can find new hire forms and information:

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