The Complete New Hire Paperwork Checklist for Your U.S. Small Business
Hiring new employees is an exciting milestone for any small business. From sorting through resumes and conducting interviews to crafting the perfect offer letter, the hiring process takes effort—and it doesn’t stop once the offer is accepted. The next big step? Completing all the new hire paperwork to ensure compliance and set your team members up for success.
To make the onboarding process smoother for both you and your new hire, we’ve put together a new hire forms checklist. The checklist covers everything from verifying an employee’s identity with identification documents to outlining the terms of their role in an employment contract or employment agreement. It also covers how to gather the necessary forms, comply with federal and state laws, and avoid potential penalties.
Let’s dive into the new hire paperwork checklist!
The New Hire Paperwork You’re Legally Required to Collect
When bringing on a new hire, some forms are optional to keep on file for convenience (we’ll cover those later), but others are legally required paperwork to ensure your business complies with federal and state laws. Here’s an overview of the necessary forms you must collect from every employee in the U.S.
Form I-9, Employment Eligibility Verification
Form I-9 is used to verify a new hire’s eligibility to work in the U.S. As an employer, you’re required to:
- Have the employee complete the form, providing personal details like their Social Security Number (SSN), address, and citizenship status.
- Review the identification documents provided by the employee, such as a passport, green card, or a combination of a driver’s license and birth certificate, to confirm their eligibility.
Once completed, you don’t need to send the Form I-9 to the federal government or the IRS. Simply keep it on file as proof of compliance. If you’re hiring a large number of employees, consider using the E-Verify system to electronically confirm their eligibility—it’s a quick and efficient alternative.
Form W-4
Form W-4 determines how much federal income tax to withhold from an employee’s pay. This is critical for ensuring your first payroll period is accurate and compliant. Employees can update their tax withholding preferences anytime, so always have the most recent version on file.
Social Security Number (SSN)
According to the IRS, all employers are required to collect and record each employee’s SSN on their Form W-2, as required by the IRS. This step helps confirm the employee’s legal eligibility to work and ensures accurate reporting of wages and taxes.
State Tax Withholding Forms
In addition to the federal Form W-4, some states require employees to complete a state tax withholding form to outline how much to withhold for state income tax. Not every state requires this, so check your state government’s website for details.
If you’re not sure if your state requires you to collect a state withholding form from your employees, make sure to check your state government website for further information.
State New Hire Reporting Forms
Every state mandates reporting new employees to comply with the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). This helps state agencies enforce child support orders. Each state has unique guidelines for submission, so consult the State New Hire Reporting Guide from the Office of Child Support Enforcement for accurate instructions.
The New Employee Paperwork You’ll Want to Collect for HR Purposes
While collecting mandatory forms like the SSN, Form I-9, and Form W-4 (plus any applicable state tax withholding forms) ensures compliance with federal and state laws, it’s just the start of setting up your new employees for success. Beyond the legal requirements, there are additional forms and documents you’ll want to collect as part of your new hire paperwork checklist to streamline your onboarding process and support your company culture.
Here’s a breakdown of the new hire forms you should gather to keep your human resources files complete.
Emergency Contact Information
Hopefully, your employees will never experience an emergency at work. But if they do, you want to know who to contact—and have their contact information handy.
- Request at least one contact person with their name, phone number, and email address.
- This ensures you can act quickly to notify the right person if necessary.
Benefits Enrollment Forms
If your company offers employee benefits like health insurance, retirement plans, or perks such as gym memberships, you’ll need to collect the appropriate enrollment instructions and paperwork.
- Include any necessary documents for health, dental, or life insurance.
- Don’t forget to gather forms related to plan summaries or retirement contributions.
Acknowledgment of Employee Handbook
Your employee handbook is the go-to resource for your company policies, including topics like labor laws, company property, and expectations for employee conduct.
- Provide a copy to every new hire.
- Have them sign an acknowledgment form confirming they’ve received and agree to abide by its policies.
Policy Forms
If you don’t have a comprehensive handbook, include individual policy acknowledgment forms for specific guidelines, such as:
- Attendance policies.
- Sexual harassment or workplace conduct policies.
- Penalties for non-compliance.
Depending on your industry or company structure, you may also want to include business-specific agreements like non-compete agreements or non-disclosure agreements (NDAs).
Direct Deposit Authorization
If you’re offering the convenience of direct deposit, collect a completed direct deposit form with your employee’s bank details (including routing and account numbers).
This ensures your payroll process is efficient and aligned with the first payroll period ending date.
By gathering these additional hire paperwork items, you’ll not only ensure compliance with legal standards but also lay the groundwork for a smooth and organized onboarding process. Taking the time to collect these other forms early on will help you avoid hiccups down the road, leaving both you and your new hires focused on what matters most: building a great working relationship.
How to Make the New Hire Paperwork Process As Efficient As Possible
A smooth onboarding process starts with an organized and efficient approach to new hire paperwork. By streamlining how you collect and manage required forms, you’ll protect your business, comply with federal and state laws, and help new employees feel welcomed into your company culture. Here are some practical tips to keep the process on track.
Schedule Paperwork for Day One
Your new hire’s first day is the perfect time to collect all employment forms like Form I-9, W-4, and any applicable state forms for withholding state income tax. Incorporate the paperwork into their onboarding schedule to ensure:
- No important document is missed or unsigned.
- Compliance with labor laws and federal government requirements.
- New hires have a clear understanding of their employment agreement outlines and company benefits.
Use a Checklist for Each Employee
Tracking paperwork can get complicated, especially when hiring multiple employees. Create a hire paperwork checklist that includes:
- Essential forms like the direct deposit form, emergency contact details, and offer letter.
- Space to track when forms are completed, signed, and submitted. This will help you avoid penalties by ensuring all deadlines are met and no forms are overlooked.
Organize Files Effectively
Keeping your employment documents accessible and complete is critical in case of an audit or legal review. Here’s how to stay organized:
- Store federal and state forms, social security card copies, and legal information in a secure system.
- Separate personal employee files from other business records, such as company property agreements or signed employment contracts.
Review and Update Documents Annually
Over time, employee details like addresses, tax withholdings, or emergency contacts may change. Conduct an annual review of all documents to:
- Ensure the accuracy of federal and state forms and avoid any compliance issues.
- Remind employees to update their details, including their direct deposit authorization or tax preferences.
- Keep records current to reflect changes in company policies or new legal requirements.
Use This Checklist to Stay on Top of Your New Employee Paperwork
Collecting the proper new employee paperwork is critical, both from a legal and business operations perspective. But now that you know exactly what paperwork you need to collect from your new hires, you have everything you need to stay organized—and ensure your new hire paperwork process goes off without a hitch.
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This post was updated in January 2025.