When a new hire joins an organization, there are a list of forms they should fill to be compliant with federal and state laws. It is mandatory for all employee to complete these forms to be enrolled as an employee, to be on payroll, and receive employee benefits.
- Register as an Employer with the IRS
1. Obtain an Employer ID Number
For getting an employer ID number you must register with the IRS. This number is a generic number and it’s connected to payroll and tax reports.
2. Join the IRS Payment System
Enroll in Electronic Federal Tax Payment System (EFTPS) for transferring the withholded taxes from employee salary to the IRS, using EFTPS system.
- W4 Form
Form W-4 (otherwise known as the “Employee’s Withholding Allowance Certificate” is an Internal Revenue Service (IRS) tax form completed by an employee in the United States to indicate his or her tax situation (exemptions, status, etc.) to the employer. The W-4 form tells the employer the correct amount of tax to withhold from an employee’s paycheck.The W-4 is based on the idea of “allowances”; the more allowances claimed, the less money the employer withholds for tax purposes. An employee may claim allowances for oneself, one’s spouse, and any dependents, along with other miscellaneous reasons, such as being single with only one job. The W-4 Form is usually not sent to the IRS; rather, the employer uses the form in order to calculate how much of an employee’s salary is withheld for tax purposes.
- Form I-9 and E-verify
Form I-9, officially the Employment Eligibility Verification, 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. All U.S. employers must ensure proper completion of Form I-9 for each individual they hire for employment in the United States.he Immigration Reform and Control Act of 1986 (IRCA) required employers to verify that all newly hired employees presented facially valid documentation verifying the employee’s identity and legal authorization to accept employment in the United States. The I-9 form, or more properly the Employment Eligibility Verification Form, is provided by the federal government for that purpose.
Every employee hired after November 6, 1986 must complete an I-9 form at the time of hire. Employees must complete Section 1 of the form upon commencing employment. The employer must complete Section 2 within three days of the employee’s starting date at work. The employer is responsible for ensuring that the forms are completed properly and in a timely manner.
E-Verify is a United States Department of Homeland Security (DHS) website that allows businesses to determine the eligibility of their employees, both U.S. or foreign citizens, to work in the United States. E-Verify compares information from an employee’s Employment Eligibility Verification Form I-9 to data from U.S. government records. If the information matches, that employee is eligible to work in the United States.
- State Withholding Form
If your state has an income tax, your employee may have to fill out a state withholding form.
- Direct Deposit Forms
A direct deposit form allows a deposit of money by a payer directly into a payee’s bank account. Direct deposits are most commonly made by companies in the payment of salaries and wages. Direct deposits are most commonly made by means of electronic funds transfers. These forms will require details such as the name of your employee’s bank details, 9 digit code routing number, account number, and the name of the account.
- Benefits Forms
Each company has a benefit policy for the employees. The employees on their part needs to be aware of the various plans available for him. The new hire by signing up for the benefits package will be eligible for benefits listed in the plan which may extend to dependents as well. He can choose a package that he feels is most favorable for him.
- Non-Disclosure Agreements
A non-disclosure agreement (NDA), also known as a confidentiality agreement (CA), confidential disclosure agreement (CDA), proprietary information agreement (PIA) or secrecy agreement (SA), is a legal contract between employer and employee.
An employee can be required to sign an NDA or NDA-like agreement with an employer, protecting trade secrets. In fact, some employment agreements include a clause restricting employees’ use and dissemination of company-owned confidential information.
- Job Application Form
The job application form contains complete information about the new hire that can be verified, like previous employers and education. New hires are required to sign and agree to authorize reference checks and background checks. The forms safeguards employee interests in the event of false information given by new hire and gives them the right to take legal course of action.
- Register With State Employment Agencies
State New Hire Registration
Employers must register new hires with their state’s new hire notification system; this allows the state to collect child support payments from them. The U.S. Department of Health and Human Services has guidance on how to register new hires with your state.
State Employer Registration
Each employee has to pay income tax based on state requirements. Employers have to deduct the income taxes from employee paychecks and give the withheld taxes to the concerned state agency.
State Worker’s Compensation
State worker’s compensation pays employees who are injured or fallen ill on the job. Organizations must register with it’s state’s Worker’s Compensation Agency and release payment into the fund.
State Unemployment Tax
Employers need to register with state’s Labor Department to pay state unemployment taxes. This tax is paid by employers into a fund that pays employees if they are laid off from the company.
- Workplace Posters
Labor law posters are the mandated state and federal employment law notices that employers are required to post in an area visible for all employees. Failure to display the correct state and federal employment law notices can result in fines and lawsuits. Some of these posters include Fair Labor Standards Act poster, Family and Medical Leave Act poster, OSHA (Occupational Safety and Health Act) poster and equal employment opportunity poster.