You’ve finally managed to get the right person to hire for your open position. Now you just need to get the paperwork out of the way. There are several documents that are required for every new hire.
The majority of them have to do with taxes and making sure that the new employee’s tax information is correct. But it’s also on the employer to be sure that the person they’re hiring is eligible to work in the United States.
Key Takeaways:
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Several forms are required for tax purposes. They include the W-2 (or W-9 if the employee is a contractor), W-4, and state withholding forms.
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Your new employee is going to have to verify that they are eligible to work in the United States. There are several different forms of ID that they can use for that purpose, and they’re also going to have to fill out Form I-9.
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The employer is going to be responsible for providing all of the forms.
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There are a few documents that a new hire will have to bring, but the employer should inform them of what they need.
What Is Hiring Paperwork?
Hiring paperwork are documents that new hires need to fill out in order to start working. In most cases, this is a mix of government-required forms and other documents required by company policy. It’s important to differentiate between required forms and optional forms, as not properly filling out the required government forms can result in problems for both you and the new hire.
The majority of the required documents are going to relate to taxes. Both the Internal Revenue Service (IRS) and local revenue services are going to want to know who’s working and how much money they’re making so that they can properly calculate tax rates.
Government Required Documents the Employer Needs
The majority of documents you’re going to need to supply. The employee is only going to be required to bring a few things that are specific to their own records. Many of these forms will need to be filled out on the first day and submitted to the proper authorities. As the employer, you’re responsible for making sure that the proper paperwork is filled out correctly.
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Form 1-9. The purpose of this document is to prove that the employee is eligible to work in the United States. It will either prove citizenship or that they have a visa that allows them to work. The Department of Homeland Security’s U.S. Citizenship and Immigration Services (USCIS) requires this form.
Employers will also have to verify that the new hire is who they say they are, which is why they have to supply identification. The form will list the acceptable forms of ID that employees can use.
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Form W-2, Wage, and Tax Statement. This document is to keep track of the employee’s pay for tax purposes. It must be filed with the Social Security Administration (SSA).
In order to fill this out, you’ll need your employee’s Social Security Number (SSN). To assure veracity, you can also use the SSA’s Social Security Number Verification Service.
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Form W-9, Request for Taxpayer Identification Number and Certification. If the new hire is a contractor, then they’re going to need to fill out a W-9 rather than a W-2. This will allow you to file Form 1099-NEC if you’ve paid them more than $600 in the last year.
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Form W-4, Employee’s Withholding Certificate. The IRS requires this form. It has information to determine how much should be withheld from the employee’s paycheck for tax purposes. The IRS recommends that this form be redone annually, but it should definitely be filled out again if the employee’s financial circumstances change.
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State Withholding Forms. Every state has different forms for withholding. A few don’t have any income taxes, while others make use of federal forms. If you’re unsure, you should contact your state’s revenue or taxation office to find out if you need additional forms.
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New Hire Reporting. While this doesn’t actually have to be done on day one, it is required within 20 days of hiring a new employee. Different states have different requirements, so it’s best to check your own state’s reporting website.
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E-Verify. If your business uses E-Verify, you’ll need to inform your employees of it. This is often included in the new hire paperwork, while others will also have posters up in the break room or similar locations.
The E-Verify service is administered by the SSA and USCIS. It allows you to verify your new employee’s employment authorization and identity. The system is voluntary on a federal level, but some states do mandate its use.
Government Required Documents the Employee Needs
There are a few documents that employees are going to be required to bring on their first day in order to allow the hiring process to go smoothly. The employer should make an effort to inform them of what they need to bring in order to fill out all the necessary paperwork.
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Identification. New employees must bring ID in order for the employer to verify their identity. This is necessary to fill out Form I-9. Acceptable forms of identification include:
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U.S. passport or U.S. passport card
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Employment Authorization Document that contains a photograph, also known as Form I-766
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Driver’s license
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State ID card that includes a photo, and descriptive information, such as height and eye color
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School ID card with a photograph
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Voter’s registration card
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U.S. military card or draft record
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Military dependant’s ID
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U.S. Coast guard merchant mariner card
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Native American tribal document
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Driver’s license issued by a US government authority
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If they’re under 18 and can’t supply any of the documents listed above, they may also bring:
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School record or report card.
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Clinic, doctor, or hospital record.
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Day-care or nursery school record
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Work permit. In order to prove that the employee is eligible to work in the United States, they are required to bring additional documentation. Acceptable documents include:
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U.S. passport or passport card
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Employment Authorization Document that contains a photograph (Form I-766)
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A Social Security Account Number card, unless it states that it isn’t valid for employment
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An original or certified birth certificate
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Certification of the report of birth issued by the department of the state. Acceptable forms are DS-1350, FS-545, and Fs-240
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Native American tribal document
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U.S. citizen ID card or Form I-197
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Identification card for the use of resident citizens in the states, or Form I-197.
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Employment authorization document issued by the Department of Homeland Security
There are also a few specialized foreign passports that may be used as both ID and employment authorization.
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Vaccination records. For the majority of jobs, a new employee isn’t going to be required to bring vaccination records. However, certain jobs require that they be up to date on their vaccines. For instance, if they work in the military or a healthcare setting.
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Social Security Number. A social security card is a type of ID that proves employment authorization, but if they don’t bring that as an ID, then they’ll need to know the number.
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A voided check. In order to set up direct deposit, the majority of businesses will need a check in order to get the employee’s bank account information. Make sure that it has void written across it so that it can’t be used for nefarious purposes.
Additional Hiring Documents
Most employers are going to have their employees fill out more than just the forms that are required by law. Since you have to have the new hire fill out government forms on the first day, most employers have them complete all their paperwork in the first day or two. Here are some other common forms that are usually filled out on day one by a new employee.
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Employment agreement or contract. This is a sort of formalizing of the offer letter. This explains what is expected of the employee and of the employer. Most U.S. employers have an agreement rather than a contract, as most contracts are not at-will employment.
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Non-disclosure agreement (NDA). Agreements of this sort aren’t uncommon in the United States, though they usually only apply if there are trade secrets or other information that the employer wishes to keep confidential. Most NDAs are time-limited and specify what information can’t be shared.
There are also usually listed penalties for violating the NDA agreement. The penalty in question is almost always monetary. However, if the employee still works for the company, their employment may also be terminated.
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Non-compete agreement (NCA). The idea behind these agreements is to prevent conflicts of interest as well as protect company information. For instance, one place that has a non-compete agreement is Petsmart. They will pay to train their dog groomers and then require that they not work for a competitor for a period of time.
The idea behind this is to prevent the newly trained groomer from taking the training that the company invested in and jumping to a competitor or starting their own business. Non-compete agreements are somewhat controversial, so you may want to consider the cost-benefit analysis of having one.
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Employee handbook authorization form. Many companies have a form for employees to sign to affirm that they received the handbook. The idea behind this is that it shows that the company gave the employee the handbook and that the employee understands that they’re supposed to abide by the rules and regulations within it.
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Employee benefits paperwork. As the new employee is already filling out other forms, a lot of employers will also have them fill out the paperwork related to their benefits. This will include insurance information, retirement fund options, and other benefits, such as stipends.
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Emergency contact information. Almost every employer has information for emergency contact in case the employee has a medical emergency while at work. That means that the employer will know who to contact in the case of an emergency and will be able to supply medical personnel with the information if needed.
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Direct deposit form. The majority of workers are paid via direct deposit these days. In order to set up that system, there are certain forms that need to be filled out. Employees need to give permission for employers to have access to their banking information and to have the money deposited directly.
Employers need to receive the banking information and have their payroll system updated. This takes some time, which is why most employees receive their first paycheck in the form of an actual check.
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Employee interest questionnaire. This is completely optional and relates to company culture. If your business is one that will hand out prizes or gifts, then you may want to have an idea of your employee’s interests and, perhaps, clothing size so that you can get prizes that they will actually appreciate and use.
However, it is best to make this questionnaire completely optional, as some employees are reluctant to provide such personal information.
New Hire Documents FAQ
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What documents should be included in a new hire package?
Documents that should be included in a new hire package include the required government documents, such as I-9 and W-2. You should also include an employment agreement, job description, and employee handbook. What other documents you choose to include will vary depending on your business.
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What forms do new employees need to fill out?
New employees are required to fill out Form I-9, a W-2, W-4, and state withholding forms. Not that the last one may not be required in your particular state, as they may either use the federal form for income tax.
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Do U.S. citizens need to complete Form I-9?
Yes, U.S. citizens also need to complete Form I-9. Every new hire needs to complete this form in order to prove that they are eligible to work in the U.S.; citizens are not an exception.
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Author
Di Doherty
Di has been a writer for more than half her life. Most of her writing so far has been fiction, and she’s gotten short stories published in online magazines Kzine and Silver Blade, as well as a flash fiction piece in the Bookends review. Di graduated from Mary Baldwin College (now University) with a degree in Psychology and Sociology.
