Getting ready to add on to your team of trusted employees? Before you put your new hire to work, there are a few things you need to do to make sure your business maintains compliance. Take a glance at the checklist below to learn what is expected of each new hire:
o Completed W-4 Form to determine withheld incomes taxes
o A valid Social Security Number (SSN) or completed Form SS-5
o Completed Form I-9 verifying eligibility to work in the United States
Be sure to keep these files on record, plus any other forms required by your individual state government.
Once your employee completes all the above forms, what else do you need to do make sure all your ducks are in a row? New hire reporting and SSN verification.
New Hire Reporting
Employers must report new hires to state agencies. The state agencies in turn pass that information on to the National Directory of New Hires so that this information can be used for child support. Plus, the system can track cases of abuse for things like unemployment, workers’ compensation and welfare benefit programs. Check out http://acf.hhs.gov/programs/cse/newhire/employer/contacts/nh_matrix.htm/ to learn about the details of your individual state’s requirements.
SSN Verification Service
Using the Social Security Number Verification Service, you can match the name and SSN of your new employee with Social Security records. Here’s why this step is important:
- If names and SSN’s on a W-2 don’t match the records, processing costs increase and employees don’t receive due credit.
- Undue credit works against the employee’s retirement, disability and survivors program.
- Accountants, tax preparers and payroll services also use these tools for wage reporting.
Simplify With Our New Hire Wizard
However, with anything, there may always be a few hang-ups, questions or concerns. But don’t worry, we are here for you. Call us anytime, and we can streamline the onboarding process to alleviate the time and headae associated with new hire administrative tasks that all businesses face.
See how we can free up your time today with the New Hire Wizard feature and many others that are standard with PayFocus here.