What is it and when to fill it out?
When you begin hiring employees you are required by government entities to have them fill out paperwork. This is often referred to as new-hire paperwork. The paperwork you have your employee fill out will depend on what type of employee you hired.
A subcontractor is also known as a 1099 employee. For more about what a 1099 employee is please visit our post here: https://www.genesisaccountingsolutions.com/w-2vs1099/
1099 employees must fill out at W-9 Form. You can find the federally required 1099 form here: https://www.irs.gov/pub/irs-pdf/fw9.pdf
Make sure that if you search for the W-9 form online, you obtain it from the IRS website. Many other sites will sell you a pdf fillable form when you can get it for free from the IRS. Subcontractors do not need to fill out any state forms.
W-2 employees tend to be any workers that work in your physical place of business. Employers are required to pay matching taxes on W-2 workers. Employers are also required to run pay for W-2 employees through payroll. W-2 employees must fill out paperwork according to federal requirements. Proper employee paperwork establishes an employee’s citizenship and identity. The US Federal government requires employees to fill out a W-4 which you can find here: https://www.irs.gov/pub/irs-pdf/fw4.pdf and an I-9 which you can find here: https://www.uscis.gov/i-9
Other paperwork that your W-2 employees should submit within three days of being hired;
- Either a copy of the employee’s drivers license and a copy of the employee’s social security card/or a copy of the employee’s birth certificate or a copy of the employee’s passport will cover both the requirement to establish citizenship and identity.
- A copy of the employee’s insurance policy card if the employee will drive a company vehicle.
- Research your state, they may have a special tax calculation that will require its own form.
- An authorization from the employee to conduct a background check if your company handles sensitive information or requires background checks.
- An employment application that shows the employee’s background information and employment history and 1 to 2 emergency contacts.
- Offer letter if your company wants to outline the position and terms of employment.
If you have further questions about employee paperwork or need other bookkeeping and accounting services, please feel free to contact us for a free consultation at 800-572-4419 or email [email protected]. Subscribe to our blog today for more useful information about accounting and HR.