Every new employee generates a small stack of required forms and reports. Getting them right in the first week avoids withholding errors, immigration paperwork penalties and state notices. This checklist covers the federal items and the categories of state requirements to look up.
Form W-4
The employee completes Form W-4, Employee's Withholding Certificate, so you can withhold the correct federal income tax. If an employee does not provide one, the IRS instructs employers to withhold as if the employee were single with no other adjustments. Keep W-4s with payroll records; employees can submit a new one at any time.
Form I-9
Every employer must complete Form I-9, Employment Eligibility Verification, for each new employee. The employee completes Section 1 no later than the first day of employment, and the employer completes Section 2, examining the employee's documents, within three business days of the start date. Store I-9s separately from personnel files and retain them for the required period after employment ends.
State withholding certificate
Many states with income tax have their own withholding form; others accept the federal W-4. Check your state revenue agency, linked from our state guides.
New hire reporting
Employers must report newly hired and rehired employees to their state's new hire registry within the time the state requires, which supports child support enforcement. The federal Office of Child Support Services provides information for employers and links to each state's registry.
Required notices
Depending on the state and your size, new employees may need written notices about pay rate and payday, paid leave, workers' compensation, unemployment insurance or other rights. Federal workplace posters must also be displayed.
Pay setup details
- Pay rate, overtime status and pay schedule; see FLSA overtime rules
- Direct deposit authorization
- Benefit enrollment and deductions
- Emergency contact
Contractors are different
Independent contractors complete Form W-9 instead of a W-4 and are not included in payroll. Make sure the classification is correct first; see employee or independent contractor.
Secure storage
New-hire forms contain Social Security numbers and identity documents. Use a secure, access-restricted system and avoid emailing them as plain attachments.
How we help
Our payroll services provide a new-hire checklist for your state and confirm each item before the employee's first paycheck.
Storing new hire records
Keep Forms I-9 separately from personnel files, since they may be inspected separately. USCIS explains retention rules on its I-9 Central pages. Keep W-4s with payroll records. Set reminders for any documents that expire.
Payroll setup checks
Before the first paycheck, confirm the pay rate, exempt or nonexempt status, pay schedule, withholding elections, benefit deductions and direct deposit details. Errors are easier to prevent than to correct.
State new hire reporting
Employers generally must report newly hired employees to the state new hire registry within a set number of days. Some payroll providers do this automatically; confirm whether yours does.
Give each new hire written pay policies.
Key terms
Definitions for terms used in this guide, from our small business glossary:
- Exempt and Non-Exempt Employees: Non-exempt employees must receive overtime under federal law; exempt employees meet specific tests that remove that requirement.
