Employers have reporting requirements when adding a new employee to their staff. In addition, there are a number of optional authorization, verification, and internal forms to be completed that can impact payroll administration.
W-4 form (W-9 for Independent Contractors)
Form W-4/W-9 is an Internal Revenue Service tax form completed by an employee in the United States to indicate his or her tax situation to the employer. The W-4 form provides the employer information to determine the correct amount of federal tax to withhold from an employee’s paycheck.
I-9 Employment Verification Form
Form I-9, the official Employment Eligibility Verification Form, is a United States Citizenship and Immigration Services form. Mandated by the Immigration Reform and Control Act of 1986, it is used to verify the identity and legal authorization to work of all paid employees in the United States.
State New Hire Reports
States typically require New Hire reports within 20 days of hiring a new employee. New Hire reporting is a process by which you, as an employer, report information on newly hired employees to a designated state agency within 20 days after the date of hire. As an employer, you play a key role in this important program by reporting all your newly hired employees to your state. Late filing fines of $25 are common, and failure to file may cost you as much as $2500.
During the onboarding process, the employee or independent contractor is required to prove their identity. This is typically done by providing a SSN or TIN along with a personal ID. It is common to report an incorrect Tax Identification Number (TIN) or (SSN) that does not match the name when filing W-2/1099 forms with the IRS. To prevent the IRS from issuing penalties for inaccurate reporting, it is recommended that you verify the accuracy of the employee/recipient’s SSN or Tax Identification Number (TIN) before filing W-2 or 1099 forms.
W-2 Electronic Delivery Authorization Form
Employers are required by the Internal Revenue Service to provide each employee with a W-2 form that states the employee’s compensation and tax withholding amounts. The IRS permits the use of electronic W-2 statements to meet this requirement.
Employers must comply with specific IRS regulations to use electronic W-2s and employees must provide their consent to receive an electronic W-2 instead of a paper copy. This notice contains the required IRS disclosure information and instructions for you to consent to receiving your W-2 electronically instead of a paper copy.
These forms vary widely depending on the nature of the job and business:
- Non-Compete Agreements
- Non-Disclosure Agreements
- Employee Invention Forms
- Employee Handbook Acknowledgment Forms
- Drug And/Or Alcohol Test Consent Agreements
- Job Analysis Forms (responsibilities, goals and performance evaluation criteria)
- Employee Equipment Inventory Lists
- Confidentiality And Security Agreements
These forms vary widely depending on the nature benefits provided:
- Life And Health Insurance
- Mobile Plan
- Company Car
- Stock Options
- Retirement Plan
- Disability Insurance
- Paid Time Off / Vacation Policies (including any paid holidays)
- Sick Leave
- Employee Wellness Perks (e.g., gym memberships)
- Tuition Reimbursement