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 a W-4 form. Employers give W-4 forms to new hires before they receive a paycheck. The W-4 form includes information such 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 unless the employee needs to make changes to the information on the form, and many states have their own version. All employers must report the finances of their employees to government agencies, regardless of the number of employees.
According to federal law, all employees must be eligible to work in the United States. Employee verification is checked under the I-9 form. I-9 forms are also known as an Employee Eligibility Form and are required to be submitted as information on 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. It allows employers to verify information an employee provides. Also, all employers can use the system to submit I-9 info and can verify a person's eligible status online.
Note: Married employees who do not declare married status on a W-4 should be treated as a single employee when withholding is concerned.
All employees need to complete an application to get hired, regardless if they gave an employer a resume. The application requests vital information that verifies whether employees can work in the country. Additionally, the form requests information such 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 paycheck 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.
Employer Identification Number
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 person who is terminated. 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 a handbook. All employees should sign that they have read and agreed to the guidelines listed in the company handbook.
Handbooks provide important information about the company's rules and regulations on the worksite and inform all employees of their rights. Handbooks or manuals can prevent lawsuits, but they can also be used as evidence in court. Regardless, handbooks provide direct communication to employees which avoids any confusion among your staff. Additionally, update your manual accordingly if any policies have changed.
Also, employers must give notifications of worker compensation plans, regardless of whether you provide it or not.
Employers may require new employees to submit to a drug test. Furthermore, some employers may ask employees to undergo a periodic testing, depending on the nature of the business. Businesses may also have multiple cameras onsite for surveillance purposes. 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 writing. Employees should also be alerted to any benefits as well, such as health insurance, life insurance, or 401K plans. At the discretion of the employee, be sure to enroll them in any benefits program your business offers. Before accepting the job, potential employees should know whether the job comes with specific benefits or not. This should be done in order to avoid confusion, you wouldn't want an employee to accept a position with unrealistic expectations. Thus, providing new employees with a written agreement detailing salary and benefits is essential.
According to the Affordable Care Act (ACA), small businesses and employees can access health care through a health insurance exchange market. Furthermore, the law mandates that employers provide written notification to employees of the exchange market and 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. It is a fast and easy system to dispense payment. Employees usually need to submit a check that is voided or any document that provides banking information. Typically, a bank 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 for the parents 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. Furthermore, 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. When it comes to the Internet, you can list on job boards or place an ad in 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 as 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 completing 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.