Checklist: Tax Issues in Hiring New Employees

Will you be brining on new employees this year? While taxes are top-of-mind, double-check your new-hire processes to ensure that you're following the best practices to facilitate next year's taxes. The Internal Revenue Service (IRS) gives this advice when hiring new employees.

-- Eligibility for Employment. You must verify that each new employee is legally eligible to work in the United States. This will include completing the U.S. Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. You can get the form from USCIS offices or by calling 1-800-870-3676. Contact the USCIS at 1-800-375-5283 or visit the USCIS Web site for further information.
-- New hire reporting. You are required to report any new employee to a designated state new hire registry. Many states accept a copy of IRS Form W-4 with employer identification added. Call the Office of Child Support Enforcement at 202-401-9267 or access its Web site for more information.
-- Income tax withholding. Ask each new employee to complete the latest IRS Form W-4.
-- Name and social security number. Record each new employee’s name and number from his or her social security card. Any employee without a social security card should apply for one.

Adapted from IRS Publication 15, Employer’s Tax Guide.