Expanding your team is an exciting moment that can set your business up for success. However, the hiring process goes beyond creating a job description for recruitment, crafting a job offer letter, and creating a total compensation package to attract talent. It also comes with the responsibility of following Equal Employment Opportunity (EEO) laws, supporting another person’s livelihood, and ensuring that not only are they paid on time but that your business is complying with all federal and state requirements.

When you’ve hired a full-time or part-time new employee, they need to fill out some documentation during the onboarding process to ensure you can run payroll. Below are the main pieces of new hire paperwork that they—and you—need to fill out. Some forms you’ll simply save, while others you’ll mail off to the government, insurance carriers, or other entities.

What forms do new employees need to fill out?

There is a set of new hire forms that each new employee should fill out. As there is often a lot of paperwork, it’s a good idea to have an onboarding checklist and new hire packet to ensure all paperwork is completed. Or you can hire a provider for HR administration to handle onboarding needs and responsibilities associated with compliance and record keeping. Outsourcing those tasks allows small businesses that are scaling to focus their time and energy on their growth strategy instead of the details associated with the paperwork for the operations that support that growth.

Government forms are always applicable, while certain other forms are optional. Here’s a complete list of the employee information you may need on (or prior) to their first day of work:

Form I-9

Each employee needs to fill out Form I-9 and provide a valid form of ID (you can also check what’s valid via the instructions on the form) for employment eligibility verification. This ensures they’re legally authorized to work in the United States.

You don’t need to submit the form, but you must keep it on file (a digital copy works just fine) for the entirety of the employee’s employment, plus three years from their hire date or one year from their last day—whichever is longer. Make sure you avoid these common I-9 mistakes.

You can also choose to verify the employee’s work status online using the Internal Revenue Service’s (IRS’s) E-Verify tool.

Form W-4

New hires need to complete this tax form to calculate the employee’s tax withholding from the federal income tax. You (or your payroll system) will need to know the employee’s withholding allowances to calculate their income tax correctly. Similar to the I-9, this form doesn’t need to be mailed anywhere, but each company is legally required to keep every employee’s W-4 on file for a minimum of four years.

Do your employees need guidance on filling it out? Share this W-4 how-to guide with your employees. It covers filling out the form in step-by-step detail. (Note: You cannot fill out the form on your employee’s behalf. And some employees may be exempt from withholding.)

Your state’s W-4 equivalent

Does your state have an income tax? Then, your employee may need to fill out your state’s W-4 equivalent so that you, the employer, know their state tax withholding.

Contact your state’s labor department or get the appropriate tax forms from a state division that handles withholding, such as a department of taxation, revenue, or something similar.

Payment forms

If your business offers it, employees should fill out a direct deposit form. It’s also a good idea to ask them to provide a canceled check or printout from their bank that confirms their routing number and bank account information.

Employee benefits enrollment forms

If you provide benefits, such as health insurance, 401(k) retirement plans, life insurance, or gym stipends, be sure to enroll qualifying new employees with human resources or your benefits provider. They will have to give you details about the family members they’d like covered, any beneficiaries, and their decision on which plan they want.

Additional forms

Sometimes, extra paperwork is needed. This can include the following:

What should employees bring on their first day?

Ask new employees to bring these pieces of information for their start date so they can breeze through all the paperwork we just mentioned.

Identification

Make sure they bring a valid form of ID on day one. What counts as valid? This lists all acceptable forms of ID. Some examples include:

  • A driver’s license and Social Security card
  • A passport

Essential info

Regardless of how you choose to onboard, you’ll need some essential details from your employee. You may want to create a template for a single internal onboarding document that collects all of these nuggets, so you have them handy in case you need them:

  • Emergency contact details
  • Routing numbers for direct deposit
  • Home address

What do employers need to do?

File a new hire report

According to the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), each state has a department to report new hires. You typically have up to 20 days (earlier, in some instances, depending on the state) to submit a new hire report with your new employee’s info, like their name, address, and Social Security number, to your designated state agency.

That report is used to figure out if people owe child support to the state. You’ll have anywhere from a few months to a couple of days to send off the information, so be sure you know your local laws to get it in on time. Check your local state tax, labor, and workforce website for more information. In California, for example, an employee has to file a DE 34. Are you a Gustomer? Our partner, CorpNet, will take care of registering your employees in the proper state.

What forms do new contractors need to fill out?

If your new hire is a contractor, the paperwork will look different. If you’re not sure if your new hire is an employee or contractor, this guide will help you figure out your worker’s classification.

Form W-9

Form W-9 is used to make sure your contractor is who they say they are. It captures their name, address, business entity, and most importantly, their Taxpayer Identification Number.

Once you receive it, double-check that they excused themselves from withholding taxes. That’s because they should file taxes on their own since they’re self-employed. After you verify the form, keep it somewhere safe for at least four years.

Where should I keep this paperwork?

It’s best to keep all this information and paperwork in an employee file that’s confidential and secure. If you use a payroll and HR system like Gusto, you can distribute, fill out, and store these documents digitally in a safe place.

Using this article as your starting base for what you need, you’ll be in tip-top shape with all the forms you need to handle. It’s also always a good idea to check your state’s labor website to stay updated on any changes to employment laws and any new, related paperwork you may need to maintain and add to your list of documents to complete and keep.

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