New Employee Legal Requirements

Before hiring, it`s important to go through all the necessary steps to make sure you don`t expose yourself to legal problems. The payroll service provider you choose may be able to help you with several steps, depending on the level of service you choose. Also note that individual states may have their own requirements for displaying signs. Therefore, it makes sense to contact your state`s Department of Labor as well. The U.S. Department of Labor maintains an online contact list of government employment offices. For every employee you hire, including the first one, you have to pay unemployment taxes to your state. This usually requires registering with the state office that oversees unemployment insurance and then reporting quarterly details of each employee`s salary, as well as required payments to the fund. Taxes can generally be paid electronically.

You must obtain each employee`s name and Social Security Number (SSN) and list them on Form W-2 (this requirement also applies to resident and non-resident foreign workers). If your employee doesn`t have their Social Security card handy, the Social Security Administration (SSA) provides Social Security Number (SSN) verification and quick access to relevant forms and publications. In addition to completing the form, the new employee must provide an original document (such as a U.S. passport) or documents (such as a state driver`s license and Social Security card) proving their identity and legal status in order to work in the United States. A Form I-9 must be completed within three days of an employee`s first day of work. A Form W-4 is completed by the employee to determine the number of allowances that the employee must determine for the amount of money withheld from taxes. An employee can take advantage of additional allowances, which means less money is withdrawn from their paycheck for taxes. In Washington, the first step in hiring an employee is to properly state your intention to do so on your Master Business license application. This is your Washington State Business License application, as opposed to your Local Business License application.

In your Master Business license application, you must indicate whether you intend to hire employees, including minors. If you did not make the appropriate selection at the time of the first submission of your application, you must resubmit it. The new submission is not expensive and quite easy. You must verify that each new employee is legally entitled to work in the United States. Ask the employees you hire to complete Form I-9, Verification of Employment Eligibility PDF. Employers are not required to file Form I-9 with the federal government, but must retain it for three years after the date of hiring or one year after the employee`s termination date, whichever is later. If you`re ready to hire new employees for your startup, review the legal requirements your business needs to comply with. Most states require employers to pay workers` compensation for workplace injuries, although some very small employers are exempt. It`s important to understand your state`s special rules and get the coverage you need. This database contains a brief summary of each state`s compensation rules, as well as links to the respective state`s website where you can find more detailed information.

I just told you what you need to know – the basics of hiring an employee. I will now turn to other legal issues that most employers should be aware of. This list is not exhaustive, but it should help you get on the right track. And don`t forget to properly document deductions and source deductions on your employees` payslips and W-2s. Before officially welcoming a new employee, you must verify their identity using the U.S. Citizenship and Immigration Services Form I-9. Your potential employee will fill out their credentials, such as Social Security number and citizenship status, and provide copies of acceptable documents proving their identity. It`s up to you or your HR team to make sure these documents are genuine. Keep each of these I-9 forms for at least three years after the employee is hired. A Form W-4 remains in effect until the employee gives you a new one.

When employees apply for an exemption from withholding income tax, they must provide you with a new Form W-4 each year. If an employee gives you a Form W-4 that replaces an existing Form W-4, begin no later than the beginning of the first billing period, which is on or after June 30. day from the date you received the replacement Form W-4. Exceptions and invalid W-4 forms can be found in Publication 15 (Circular E), Employer`s Tax Guide. Here`s a look at 10 legal requirements every employer must meet before hiring a new employee: It`s hard to answer because it really depends on the policy and its implementation. But in general, your company`s policies are your policies and when an employee is hired, they agree to abide by those rules. While these are the most important steps employers need to take required by federal or state laws, there are other smart things to do before you start hiring people. This includes creating an employee handbook so there are no questions about your employee`s rules and protocols (even your first hire) and creating a personnel file for each employee.

State taxes – Depending on the state where your employees are located, you may need to withhold state income taxes. For more information, visit the state and local taxes page. In Illinois, you must apply for business tax payment under www.revenue.state.il.us/Businesses/register.htm Form I-9 Employment Eligibility Verification Form, U.S. Department of Homeland Security form, which is required of new employees to verify identity and employment eligibility — can be completed and saved online or printed. Provides a list of acceptable forms of identification. Federal payroll and income tax returns – Each year, employers must report to the federal government the wages paid and taxes withheld for each employee. This report is filed with Form W-2, Payroll and Income Tax Return. Employers must complete a Form W-2 for each employee to whom they pay salary, wages or other remuneration. In addition, you must file a quarterly IRS 941 to report payroll taxes due for that quarter, and an IRS 940 each year to report all unemployment taxes owing. Employers must send copy A of the W-2 forms to the Social Security Administration by the last day of February to report your employees` wages and taxes for the previous calendar year.