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Hiring a New Employee - Get the Paperwork Done Right
When hiring a
new employee, do not forget to take care of ALL the required paperwork.
Otherwise, it could come back to haunt you later.
W-4:
Withholding Allowance Certificates (for both the federal AND the
state)
Employees
must complete a federal Form W-4 (Employee’s Withholding Allowance
Certificate), and any applicable state or local withholding form, so
that you know how much income tax to withhold.
You may ask the employee to show you his or her Social Security
card (and you may photocopy it) so that you can verify that the name and
Social Security number (SSN) that you enter in
your payroll records and eventually provide in federal and state payroll
reporting (such as Form W-2) are correct.
Accuracy now will eliminate future notices of errors and potential
penalties.
You
can download this form at www.irs.gov/pub/irs-pdf/fw4.pdf
Form
I-9: Work Eligibility
Verify
that the employee is legally eligible to work in the
United States
. The employee and employer
must each complete their parts of Form I-9 (Employment Eligibility
Verification), and the employee must show original documents that
prove identity and work authorization.
For
more information, click on this link:
www.uscis.gov/files/form/I-9.pdf
All
employees, citizens and noncitizens, hired after November 6, 1986 and
working in the
United States
must complete a Form I-9.
New
Hire Reporting
Both Federal and State
laws require all employers to report newly hired and re-hired employees.
(In
Indiana
and
Ohio
, you must complete this within 20 days of hire.)
This information is matched against child support records at the
state and national levels to locate parents who owe child support.
States are also using this information to combat fraud in the areas
of unemployment insurance, disability insurance, and workers’
compensation benefits.
In
Indiana
, call 1- 866-879-0198, toll-free, or use this link:
https://newhirereporting.com/in-newhire/default.asp
In
Ohio
, call 1-888-872-1490, toll-free, or:
www.oh-newhire.com
Avoid
Identity Theft: Verify
Employee’s Name and Number
It is a good
idea to verify the match of the name and SSN, in case of a name change or
fraud. You can call the Social
Security Administration at 800-772-6270 to verify the information of up to
five employees at a time. Or,
use Social Security's free Internet service to match employees' names and
SSNs with Social Security's records at the time of hire or before you
prepare and submit Forms W-2. Be
prepared with the employer’s name and federal ID number AND the
employee’s name, SSN, gender, and date of birth.
Consider verifying the identity of ALL new hires, including those
hired through an employment placement agency.
For more information, see www.socialsecurity.gov/employer/critical.htm.
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