Checklist for Hiring Employees

Employers' U.S. Documentation Requirements

Update: Reno, NV

Nevada Employers...NEST Employee Retirement Savings Program rolled out. Read about the Nevada Employee Saving Trust Program here.

As an employer, you are responsible for New Hire documentation. Below is a checklist of things to stay up on when you hire someone. C & M Bookkeeping can support you with some of these tasks. But it is always prudent to check with your legal, tax, and financial professionals when it comes to business responsibilities.

This article is provided for informational purposes only and does not constitute professional advice or direction. Gather questions for your professional advisers after reading if something is not clear.

Before Hiring – Employer's Responsibilities

1. Obtain an Employer Identification Number (EIN)
   • Apply through the IRS if you don’t already have one.
   • IRS EIN Application Website
2. Register with State Labor and Employment Departments
   • Check requirements for your state regarding employer registration for withholding taxes and unemployment insurance.
3. Create a Payroll System
   • Decide on payroll frequency and system (manual, outsourced, or software).
   • Set up payroll tax deductions (federal income tax, Social Security, Medicare, and any applicable state/local taxes).
4. Develop Workplace Policies
   • Ensure compliance with state and federal labor laws, including OSHA standards.
   • Draft an employee handbook covering workplace expectations, benefits, and policies.
5. Verify Eligibility to Work in the U.S.
   • Use E-Verify to confirm an individual’s eligibility if required by state law.

Upon Hiring an Employee

1. Complete Form I-9 (Employment Eligibility Verification)
   • Verify the employee’s identity and eligibility to work in the U.S.
   • Keep completed Form I-9 on file for all employees (do not submit to the government).
   • Retain I-9s for at least three years after the hire date or one year after termination, whichever is longer.
2. Obtain a Signed Form W-4 (Employee’s Withholding Certificate)
   • Have employees complete this form for federal income tax withholding.
   • File the form with your payroll records.
3. Collect State Tax Withholding Forms
   • If your state collects income taxes, ensure employees complete any necessary state-specific withholding forms.
4. Enroll Employees in State Unemployment Insurance (SUI)
   • Report all new hires to the state within the required timeframe (varies by state).
5. Confirm Workers’ Compensation Insurance
   • Verify and document coverage for workers' compensation insurance as required by your state.
6. Verify Direct Deposit Information (Optional)
   • If offering direct deposit, obtain the employee's bank details and authorization.
7. Register Employees for Benefits (if applicable)
   • Provide required benefits enrollment forms, such as for health insurance, retirement plans, or other fringe benefits.

After Hiring

1. Report New Hires to the State Directory of New Hires
   • Required within 20 days of hire (or sooner in some states).
   • Helps states enforce child support orders and other obligations.
2. Post Mandatory Workplace Notices
   • Ensure required labor law posters (e.g., wage and hour laws, OSHA requirements) are displayed.
3. File Form W-2 at Year-End
   • Provide employees with Form W-2 to report wages and tax deductions.
   • Submit W-2s to the IRS and Social Security Administration (SSA).
4. Retain Payroll and Employment Records
   • Keep records of wages, hours, tax payments, and benefits for at least three years.

Ongoing Compliance

1. Verify Tax Payments
   • Regularly deposit federal, state, and local payroll taxes.
   • File IRS Forms 940 (FUTA tax) and 941 (quarterly federal tax return) as required.
2. Renew and Update Policies
   • Keep workplace policies, employee handbooks, and compliance measures current with legal requirements.
3. Conduct Periodic Audits
   • Review payroll and personnel files for accuracy and compliance with applicable laws.

This checklist helps the busy owner ensure compliance with U.S. federal and state regulations for hiring and managing employees while minimizing the risk of penalties.

As your payroll provider, C & M Bookkeeping can help with some of these tasks. You are ultimately responsible for all compliance requirements.

We cannot provide Human Resources management services. We cannot provide income tax planning/advice/filing services. We cannot provide financial management services.

We limit our services to managing your payroll and bookkeeping only. This article is for informational purposes only. There is no warranty of responsibility in these matters.

Let me know if you need additional details of how we can help you succeed as a small business owner and employer. Thank you.