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Posted on  |  Hiring and onboarding

5 Records Required for Every New Hire

In order to comply with certain federal and state laws, employers must complete certain paperwork when bringing a new employee on board. Below is an overview of what new hire forms are required:

Notice of coverage options:

  • What: Under the Affordable Care Act (ACA), employers must provide a Notice of Coverage Options ("Notice") to all new hires. The purpose of the Notice is to inform employees of the availability of the Health Insurance Marketplace ("Marketplace") created in accordance with the ACA.
  • Who: All employers subject to the Fair Labor Standards Act (virtually all employers) must provide the Notice, regardless of whether the employer offers health coverage.
  • How: The Notice must be provided in writing and may be hand delivered, sent by first-class mail, or sent electronically as long as the U.S. Department of Labor's electronic disclosure safe harbor rules are met. See 29 CFR 2520.104b-1(c), Disclosures through Electronic Media.
  • Notice contents: The Notice must include:
    • Information about the services provided by the Marketplace;
    • How to contact the Marketplace;
    • Information about the employer, including any employer-sponsored health coverage available;
    • The potential impact on the employee if he or she purchases coverage through the Marketplace; and
    • Information the employee will need to gather in order to apply for coverage through the Marketplace.

Note: ADP makes the Employer Notice of Coverage Options letters available to you in the RUN Powered by ADP® Support Center. The version of the letter you provide to your employees will depend on whether you currently offer insurance coverage and the type of coverage you offer.

Form I-9:

  • What: Employers must complete a Form I-9 for each newly hired employee. The form is used to confirm that the employee is authorized to work in the United States.
  • Who: All employers.
  • How: Complete Section 1 of the form by the end of the employee's first day of work and complete Section 2 within 3 business days. While you can complete the I-9 before the employee's start date, you must wait to do so until after the employee has accepted the job offer. Retain I-9 forms for at least three years, or for one year following the employee's separation from the company, whichever is later.

New hire reporting:

  • What: Federal law requires that employers submit certain information to their state regarding each new hire. Under federal law, employers generally must report new hires within 20 days of the employee's start date, but several states have shorter timeframes. Check your state's new hire reporting requirements to confirm compliance.
  • Who: All employers must comply with new hire reporting requirements.
  • How: To fulfill federal new hire reporting responsibilities, employers must report: their company's name, address, and federal Employer ID Number; and the employee's name, address, Social Security Number, and date of hire. Employers have several options for reporting new hires, including submitting the new hire's W-4 or an equivalent form. Note: Some states may require employers to use a particular reporting method, such as electronic reporting. Check your state's new hire reporting program for requirements and options.

Form W-4:

  • What: All new employees must complete a federal Form W-4. This form tells the employer how much federal income tax to withhold from the employee's pay. Some states also require a tax withholding form. Check your state law to ensure compliance.
  • Who: All employers.
  • How: Employers should ask each new hire to complete a W-4 by the end of the employee's first day of work. Retain W-4s for at least 4 years.

State-required forms:

Many states also require that employers provide specific notices to new employees at the time of hire. For example, California requires employers to provide new hires with notices on state disability insurance, paid family leave, workers' compensation, and wage theft prevention laws, among other topics. Review applicable state law and provide new hire notices in accordance with your state's requirements.

Conclusion:

In addition to the required forms listed above, it is a best practice to have new employees complete emergency contact forms, handbook acknowledgments, receipts of company property (such as a laptop or building keys), and payroll authorizations (e.g. direct deposit) by the end of their first day of work.

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