You’ve just hired a new employee. One of your first responsibilities is to complete required paperwork and provide certain notices to new hires. Here are some do’s and don’ts to help you meet your new hire paperwork obligations:

Do's:

• Complete Form I-9. Employers must complete a Form I-9 for each newly hired employee to confirm that the employee is authorized to work in the United States.
• Complete Form W-4. All new hires must complete a federal Form W-4 to determine how much federal income tax to withhold from the employee's pay. Some states also require a tax withholding form.
• Provide ACA Notice of Coverage Options. Under the Affordable Care Act (ACA), employers must provide a Notice of Coverage Options to all new hires. The purpose of the Notice is to inform employees of the availability of the Health Insurance Marketplace created in accordance with the ACA. This requirement applies even if the employer doesn't offer health insurance and/or the employee is not eligible for health insurance.
• Comply with state requirements. Many states and local jurisdictions also require that employers provide specific notices to employees at the time of hire. For example, California requires employers to provide new hires with notices related to state disability insurance, paid family leave, workers' compensation, and other laws. Provide new hire notices in accordance with your state and local requirements.
• Meet required deadlines. Most forms must be completed on the employee’s first day of work, including the W-4 and Section 1 of the I-9 (Section 2 must be completed within 3 business days). You must provide the ACA Notice of Coverage Options within 14 days of the new hire’s start date. To help ensure these timelines are met, it is a best practice to complete all paperwork, and provide new hires with all appropriate notices, on their first day of work.
• Meet full retention periods. I-9s must be stored for at least three years following the employee's date of hire, or for one year after he or she leaves the company, whichever is later. W-4s must be retained for at least 4 years. While there is no express requirement to retain a copy of the Notice of Coverage Options, it is a best practice to document when and how the notice was provided (e.g., hand delivery, via mail, electronically).

Don'ts:

• Don't fail to withhold if the employee refuses to complete a W-4. If the employee refuses to complete a W-4, you should generally withhold as if the employee were single and claiming no withholding allowances.
• Don't send W-4s to the IRS unless otherwise directed. In the past, there was a requirement for employers to routinely send W-4s to the IRS if the employee claimed more than 10 allowances. That requirement no longer exists. However, ensure that the employee’s W-4 is available for inspection should the IRS request it.
• Don't neglect the ACA Notice even if you don't offer health coverage. All employers must provide a Notice of Coverage Options to new hires, regardless of whether the employer offers health insurance. There are two versions of the form; one for employers that offer health insurance, and one for employers that do not offer health insurance.
• Don't require specific I-9 documents. The I-9 requires new hires to present documents that establish identity and work eligibility. However, you may not require the employee to present certain documents. The employee has the right to choose which documents to present, provided they are on the I-9's List of Acceptable Documents (see the last page of the form).
• Don't complete a Spanish I-9, unless you're in Puerto Rico. The federal government publishes a Spanish version of the I-9, but only employers in Puerto Rico are permitted to complete it. Other employers may use the Spanish version as a guide for Spanish-speaking employees, provided the English version is completed and retained.
• Don't keep I-9s in personnel files. It is a best practice to store all I-9 forms together in one file, separate from personnel files, since they must be produced upon request. I-9s must be presented within three days of an inspection request from an officer of the Department of Homeland Security, Office of Special Counsel, or the U.S. Department of Labor.

Conclusion:

Failure to comply with new hire paperwork requirements may result in fines as well as create a negative impression with new hires.