Highlights
- When onboarding a new hire, it’s crucial to ensure compliance with all applicable labor laws and regulations.
- This includes submitting a W-4 form to the IRS and providing benefits enrollment forms to employees.
- At Employers Resource, we specialize in HR compliance and administration. Let us handle your HR-related tasks, so you can focus on growing your business. Contact us today to get started!
Bringing someone on board is always exciting. But besides welcoming your new hires, you need to ensure a smooth onboarding process that adheres to legal requirements. This new hire paperwork checklist will guide you through the essential documents to set your new hires up for success and avoid potential compliance issues.
Let’s dive in!
Why is New Hire Paperwork Crucial?
From a legal compliance perspective, it’s crucial to adhere to all applicable labor laws and regulations. This helps you avoid penalties and maintains a positive company image.
What’s more, a well-structured onboarding process will be much appreciated by your new hires, contributing to employee satisfaction and retention. Finally, having all the necessary paperwork in place will make administrative tasks more efficient, saving time, and ensuring a seamless start.
Download our New Hire Pocket Guide for Employers and get everything you need to successfully onboard new employees!
New Hire Paperwork Checklist
New hire documents typically fall into two categories: those required by law (federal and state forms), and company-specific HR documents.
Let’s take a closer look:
W-4 – Employee’s Withholding Certificate
- When: The first day of employment
- Why: To determine federal income tax withholding amounts
Every new hire must complete and sign a W-4 Form. This form includes information on marital status, number of dependents, and additional withholding amounts. This is how you will know how much to withhold from the employee’s paycheck for federal income taxes.
Once completed, you must submit the Form W-4 to the IRS. You are required to implement new W-4 forms by the start of the first payroll period ending on or after the 30th day from the date you received it.
While you cannot provide tax advice, you can direct employees to helpful resources to complete this form.
Depending on the state your employees work in, you’ll need them to fill out different paperwork for their State Income Tax withholdings.
I-9 – Employment Eligibility Verification
- When: Within 3 days of the employee’s start date
- Why: To verify the employee’s identity and authorization to work in the United States
The Form I-9 is a federal government form used to ensure compliance with the Immigration Reform and Control Act of 1986. All U.S. employers are required to complete an I-9 for every new hire working within the United States.
To do this, you’ll need to obtain copies of documents that confirm the employee’s citizenship (driver’s license and social security card, birth certificate, or green card) and fill out Form I-9.
You don’t have to submit this form to the federal government, but you are required to keep these forms on file for three years after the employee is hired, or one year after termination. You can verify your new hire’s employment eligibility electronically through U.S. Citizenship and Immigration Services’ E-Verify system.
If you do not complete the W-4 and I-9 forms in the required time frame, your business could be audited, and you would receive fines for this tiny slip-up. As a good rule of thumb, don’t let employees start work until these forms are finished and returned to you and the federal government.
Benefits Forms
Benefits Enrollment is a process that involves selecting and activating employee benefits packages. This typically includes health insurance, retirement plans, and time-off options.
Each of these benefits requires specific paperwork outlining the main terms and conditions. These forms may vary depending on the specific plans.
Direct Deposit Authorization
By signing this document, new employees authorize you to deposit their paychecks directly into their bank account. They also need to provide their bank name, account number, and routing number.
Company Policies and Procedures
- Job Description. You should provide new hires with a detailed outline of their responsibilities, duties, and job requirements. This helps clarify expectations and provides a clear understanding of the role’s scope.
- Offer Letter. This is a formal document that outlines the terms of employment. It includes the job title, starting salary, benefits, start date, and any specific conditions or requirements. New hires need to sign this document as part of the hiring process.
- Employee Handbook. A comprehensive guide to the company’s policies, procedures, and benefits, it serves as a reference for employees and provides information on topics like workplace conduct, performance expectations, and grievance procedures.
Onboarding and HR Compliance Made Easy with Employers Resource
Finding and hiring the right candidate for your business is already a significant challenge. And yet, you still must deal with paperwork and ensure compliance with labor laws.
With the right support, you can streamline this process and alleviate compliance concerns.
Employers Resource offers comprehensive PEO services to help businesses navigate HR compliance, payroll, benefits, and more, allowing them to focus on achieving their growth goals.
Ready to optimize your HR processes? Contact us today and schedule a consultation with our HR experts!
