I just hired my first employee, what paperwork needs to be filled out?
Paperwork for new employees can be separated into two categories. First, the paperwork needed from the new employee. Second, the paperwork needed by the employer.
The paperwork needed from the new employee includes a federal Form W-4 and Form I-9. The Form W-4 provides information to the employer so that the employer can withhold the correct amount of federal income tax from the employee’s paycheck. The purpose of Form I-9, which is provided by the U.S. Citizenship and Immigration Services, is to verify the identity and employment authorization of the new employee. If you are not familiar with either one of these forms, then it is important that you read and follow the instructions for the forms. Other paperwork needed for new employees may include acknowledgment receipt of employee handbook, benefit enrollment forms (health insurance, retirement plan, etc. if provided), direct deposit forms, formal job offer, etc. Most of the paperwork needed by employer will depend upon what benefits the employer provides the employee.
The paperwork needed from the employer varies by state. In Oklahoma, the employer will need to fill out an application for state unemployment account (Form OES-1) and state income tax withholding account (Business Registration Packet). Different states may also have local tax accounts that need to be established as well. If the employer is going to have a third party payroll provider, then Form 8879 will need to be filed with the Internal Revenue Service. One of the employee requirements mentioned above is an employee handbook. Obviously, the employer will need an employee handbook before they can obtain an acknowledgment of receipt from the employee! Most states also require worker’s compensation (worker’s comp) insurance be provided to employees. Oklahoma, for example, requires worker’s comp insurance.
Hiring new employees can be an exciting but daunting task! After you hire employees, then the business will have ongoing requirements to file monthly, quarterly, and annual payroll reports to federal and state government agencies. Timeliness is important with payroll filings and penalties can be steep if you do not file or pay taxes on time. Core Group provides full-service payroll to small to medium size businesses. We are able to provide expert guidance whether you are hiring your first or one hundred and first employee!
Let our experts help you with any of you bookkeeping, payroll or tax needs. Contact our offices in Oklahoma City: 405-288-1207 or Tulsa: 918-209-3441 to get the help you need.