How to Hire a New Employee (Payroll Forms Included)

Wouldn’t it be nice if you could simply write your employee a check for work done? You and your employee would probably be happier.  Paying a new employee is not simple, but we’ll walk you through the steps that will make the forms and the process a little easier. If you’re still trying to figure out when to hire check out our article: The Secret to Hiring Without Going Broke. 

Depending on both your state and the federal government there are lots and lots and lots of forms to fill out.  Then, of course, you’ll need to keep this up to date.  

Keep your payroll forms up to date with this payroll pack

Get the calculator and all the form you need to keep your employee information and keep them compliant for the government.

Forms the Business Needs to Fill Out Before Hiring an Employee 

1. You’ll need an Employer Identification Number (EIN)

An EIN is like a social security number for your business.  You’ll need an EIN to pay your payroll taxes to the business and it will be used when you give out the W2 or 1099s etc.   

Hot Tip: You don’t have to be an S-Corp or an LLC to get an EIN but it does help protect your social security number if you’re a sole proprietor

It’s completely free to get an EIN and you can apply online or fill out a Form and send it to the IRS via mail or fax (seriously only the government still uses fax). 

2. State/Local Tax ID Number

Not only does you the federal government but you’ll need to apply for a state/local tax ID number.  Sometimes, cities and counties will want you to process income as well.  Make sure you check out your state department of revenue or comptrollers office to apply.

3. State Unemployment ID Number

Besides your Federal Unemployment taxes (FUTA) your state will also have a state unemployment tax (SUTA) once you get your state or local Tax ID Number you’ll need to get this number (if separate for your state. 

What Forms Your New Employees Will Need to Fill Out for Payroll 

Onboarding a new employee can be tough make sure that you have them fill out their documents on the First day.  If you’re using a payroll company upload or give the documents to them if not you’ll need to have these legal forms to ensure that if you get audited you have the correct info on hand.

Hot Tip: Yes, your state can request to audit your payroll. This means they come in and make sure that you are paying your employees properly. Having the correct documents on hand will make sure this is an easy process.

1. Employee Addresses and SSN/TIN

We generally have them fill out an application with all their basic information.  Now we get their private information to pass on to the Payroll company.  Make sure you keep this information under lock and key (or password protected electronically.   

2. Federal I-9 Form

Every employee needs to have an I-9 Form on hand.  I-9s are Employment eligibility verification.  Make sure your employees sign their documents as it attests to their employment authorization.  You can find the forms here. 

3. W-4 Form

Everyone hates filling out the new W-4 Form (me too!)  But you must have it as it will list the income and family information.  Payroll companies use it to calculate how much money to withhold from their paycheck for federal income tax.  You can find the new form and calculator here.  

4. Direct Deposit form  

Though there is no one form to use if you are going to deposit their checks in a bank account you’ll need to have them fill out a consent form.  Your bank may have one if not you can download the payroll pack and we have one available for your use.  

Hot Tip: Many states have a work opportunity credit that your company may be eligible for if you hire certain types of workers.  i.e. low income, recently separated veterans or recipients of Medicaid benefits.  Check with your state’s department of revenue to find additional information.  You’ll need to have employees fill out a federal form 8850.  You can find more information here.  As there are additional forms that must be filled out and filed in order to receive the credit.

Monthly, Quarterly, Annual Payroll Forms to File

Depending on your circumstances and the number of employees you’ll hire you may need to fill out a monthly but most likely you’ll fill out your withholding information on a quarterly basis.   

Quarterly Federal Form 941 or 94X(if amending)

The payroll report form tells the government of all your employment tax liabilities. And remits all taxes that you withheld from employee wages AND the payroll taxes you paid.   

Frequency:  Quarterly 

Forms:  941  

Due Date: April 30, July 31, October 31, and January 31 

Where to Pay:  https://www.irs.gov/businesses/e-file-employment-tax-forms 

Hot Tip: If you hold less than $1,000 for any of your employees you can file an annual 944 form.  This is for the tiniest businesses.  But if you’d like more information, you can find it here. 

State Quarterly Payroll 

States with income tax or even states that don’t will require you to submit quarterly payroll reports and filings.  That list is waaaay too long to list here as every state is different.  Make sure you go to your state’s comptroller’s office to get the forms you need.   

Frequency: Quarterly 

Forms: Varies by state 

Due Date: Generally will follow federal April 30, July 31, October 31, January 31 

Where to Pay:  Various, check with your state 

Form 944:  Annual Federal Tax Return 

This form is for very tiny companies that withhold less than $1,000 in payroll.  Most businesses do not have this low so make sure you do your 940s 

Frequency:  Annually 

Forms:  944 

Due Date: January 31 

Where to Pay:  https://www.irs.gov/businesses/e-file-employment-tax-forms 

Form 8027:  Annual Information Return of Tip Income 

If you have employees that receive tips you’ll need to file this form which reports tips received and determines allocated tips. 

Frequency:  Annually 

Forms:  8027 

Due Date: February 28 if mailed and Electronically March 31st 

Where to Pay:  https://www.irs.gov/businesses/e-file-employment-tax-forms 

Keep your payroll forms up to date with this payroll pack

Get the calculator and all the form you need to keep your employee information and keep them compliant for the government.

Putting it All Together

I can not strongly enough emphasize that you should if you are hiring a new employee having a payroll company should be on your list of expenses. The piece of mind to get ensure that your payroll compliance is worth the cost.  Check out Gusto and even Intuit payroll and compare some prices.  On a second note having the right payroll forms that you keep on hand for any employees is a must.  If you are unsure download the Payroll pack and make sure you have a file for each and every employee even ones that leave you.  Avoid penalties and fees associated with missing out on these very important documents.

Cheers!