New Hire Forms: Everything You Need to Know
When it comes to new hire forms, you need to start with Form W-4. Employers give Form W-4 to new hires before they receive a paycheck.6 min read
New Hire Forms
When it comes to new hire forms, you need to start with Form W-4. Employers give Form W-4 to new hires before they receive a paycheck. W-4 includes such information as
- Number of Dependents
- Designated Withholding Amounts
- Marital Status
All employees must complete the form so employers know how much to garner federal income taxes from their workers. Further, the W-4 form remains current until the employee changes information on the form, and many states have their own version. All employers must report employees to government agencies, regardless of the number.
According to federal law, all employees must be eligible to work in the United States. Employee verification is checked under Form I-9. I-9 is also known as an employee eligibility form and submits information about a newly hired person in the United States.
Employees must submit the following information:
- Employment Eligibility
Additionally, employers with a large number of employees can use E-Verify to verify the eligibility of new workers. E-verify is used by the Social Security Administration and Department of Homeland Security and allows employers to verify information about an employee. Also, all employers can use the system to submit I-9 info and can verify a persona’s eligible status online.
Note: A married employees who does not declare married status on W-4 should be treated as a single employee when withholding is concerned.
Each new employee must complete a job application form, even if this person has already submitted a resume for the job.
All employees need to complete an application to get hired, regardless of whether they gave an employer a resume. The application requests vital information that verifies whether employees can work in the country. Additionally, it requests for such information as previous employment and educational status. When filling out an application, provide accurate answers to avoid complications.
An application also asks employers to take the new employee’s signature to ensure that all information is correct and truthful. Businesses then submit information to state authorities, allowing the government to collect any child support obligations if necessary. In addition, the state garners any income tax obligations.
State agencies provide employers with withholding forms, including mandates in reporting the amount withheld. All incomes taxes must be deducted from an employee’s pay check and submitted to the appropriate authorities in your state. Check your state laws to determine if you have an income tax system in your state.
An Employer Identification Number (EIN) is used by the government to identify your business, and it is similar to a Social Security Number. You can get an EIN via the IRS website, and it is a free process. Moreover, it is used to report tax information and make payments accordingly at the state and federal levels. Employees must also have an EIN. To satisfy state-wide requirements, go to your Department of Revenue and register your business. Use the Electronic Federal Tax Payment System to apply the necessary payroll tax obligations along with filing the necessary reports.
Worker’s Compensation is a vital component of any business that hires employees. It is a form of insurance that covers any employee illness or injury while on the job. In addition, employers must honor Unemployment Insurance for any persona who is terminated suddenly. In addition, posters need to be displayed in various areas of the worksite alerting employees of their rights in the workplace.
Note: employers need to keep detailed records regarding payroll taxes and other information. There are no laws mandating you to use any employee handbooks or policy manuals, but your business would benefit by having such items in place.
All new employees should receive a copy of this handbook and should sign that they have read and understand it.
If you decide to hand out employee handbooks, have each worker read the book and sign confirming that they read it in its entirety. Handbooks give important information about rules and regulations on the worksite, while informing employees of their rights. Handbooks or manuals can prevent lawsuits, but it can also be used as evidence in court. Regardless, handbooks provide direct communication to employees and clears any confusion along your staff. Additionally, update your manual accordingly if any policy have changed.
Also, employers must give notifications of worker compensation plans, regardless of whether you provide it or note.
Employers may require new employees to submit to a drug test. Businesses may also have multiple cameras onsite for surveillance purposes. Further, some employers may ask employers to undergo a periodic search, depending on the nature of the business. If your business requires clearance, issue the necessary ID cards or employee ID numbers to new workers. You may also take advantage of what is known as a “Property return security deposit,” an escrow account that is held against any lost or damaged items that an employee rents or borrows for work purposes
Wages and Benefits
Any agreement regarding wages should be in written form. Oral communication regarding pay should be in writing. Employees should also be alerted of any benefits as well, such as health, insurance or dental plans. Be sure to enroll each new employee in any benefits program your business decides to offer. Potential employees should also know whether the job comes with benefits to avoid confusion in the future. Ensure that all important information is placed in writing to ensure that all parties are on the same page.
According to the Affordable Care Act (ACA), small businesses and employees can access health care through a health insurance exchange market. Further, the law mandates that employers notify employees in writing regarding the exchange market, including other information regarding health care coverage. This law only applies to businesses that provide some kind of health plan.
Direct deposit is a great way to make payments easier for both employees and employers.
Direct deposit is a great system for employers and employees because it is a fast and easy way to dispense payment. Employees usually need to submit a check that is voided, or any document confirming banking information. Typically, a banking routing and checking number are required. If choosing the direct deposit method, issue a direct deposit form to new employees.
An EEO-1 form is reserved for businesses retaining over 100 employees and federal contractors with over 50 workers. EEO-1 forms fall under the jurisdiction of the Equal Employment Opportunity Commission for various purposes, such as assessment data research or enforcement. The information is shared among other federal agencies that are authorized to view such information.
Affirmative Action and Children
You may be required to hire a certain number of minorities in a workplace environment. If this applies to your business, you can invite new applicants to fill out information regarding gender, veteran status or ethnicity. Remember, such information is entirely voluntary on the part of the applicants, and the data is used by the government for data research purposes. Regarding children, you may hire them as well, but you need to conduct a background check on them and get written consent from the parents. Issue a consent form to the parents for them to fill out.
When hiring new employees, have them go through an orientation on the first day of the job. When drafting a job description, choose your words carefully in order to avoid offensive or discriminatory language. Choose simple language when talking to people on the worksite. Further, establish any deal-breakers in notifications, and inform potential hires of benefits if you wish to compete with other businesses if necessary.
You can choose from such benefits as:
- Vacation Days
- Company-paid training
Getting the Employees You Want
Offering stellar benefits can attract the best employees in the marketplace. When it comes to the Internet, you can list on job boards or place an ad in a local classifieds. You may also ask for references from a previous employer, and you can choose among the best candidates by requesting referrals.
Employees vs. Contracts
The IRs defines an employee is someone who performs a service or task if you can control what and how the task will be completed, but a contractor gets most of the control when it comes to completed tasks. Contracts usually have personal tools or supplies to get a job done, and you generally do not have to provide much equipment to them. When reporting to the IRS, be sure to distinguish between a contractor and employee, as you could get into trouble with the agency if you make a mistake.
If you need more information on new hire forms, you can post your legal need on our marketplace. UpCounsel helps employers run their business efficiently while fostering a healthy employee-employer relationship in the workplace. UpCounsel’s dedicated legal team averages 14 years in legal experience and is more than equipped to help you with your workplace needs.