Upon hiring new employees, an employer is required to fill out a multitude of forms for governmental purposes. For employment anywhere in the United States of America, an employee must fill out an Immigration I-9 form and a W-4 , in order to establish eligibility to work.
This form requires certain types of identification. One is a US Passport which verifies identification and US Citizenship. If the prospective employee does not have passport, two forms of identification are required, one that establishes identity and one that establishes employment authorization. For most people that is a driver’s license and a social security card. However, when you are looking at new employees with work visas, etc. it becomes a little more difficult. All the instructions needed to correctly comply with the requirements are located on the I-9 form.
The W-4 establishes an employee’s marital status and the number of exemptions they are claiming, in order to properly withhold taxes from their pay. Other specific information is required for employees hired in New York State. All states which have a personal income tax either use the Federal W-4 form or have something similar. In New York State, employees fill out form IT-2104.
There are two more items required by New York State. As an established employer, all necessary unemployment insurance, worker’s compensation and disability should be in place, but aside from all of that, you must also report any new hires to the New York State New Hire Reporting Service within 20 days of the person being hired. In speaking with many business people, I find that a lot of them do not know this. New York State has the right to penalize an employer $20 for every employee not reported. Furthermore, they can check your employment records back as far as they want.
The following is a link to the New York State Department of Taxation and Finance, which explains New York hiring requirements in more detail.
The second New York State requirement under the Employment Laws/Labor Standards of New York State is called Pay Notices, which can be found on the New York State Department of Labor website. Basically, these are reports that must be filled out when you hire a new employee and then updated annually as well. It is a document which communicates between the parties the employee’s rate of pay and whether or not the employee is exempt or nonexempt, which refers to overtime.
As all business owners know, compliance requirements for new hires can sometimes takes up a large part of our day, but it is very important to make sure that all the I’s are dotted and T’s are crossed so that you don’t run afoul of Federal and New York labor laws.