Ensuring Compliance with New Hire Reporting Requirements
The employee pool changes constantly, depending on the nature of the business. Some industries engage in seasonal hiring while others hire as needed when employees leave or when the business is in an expansion mode. Regardless of the reasons, it is important for all businesses to comply with the required paperwork for new hires or risk federal and state penalties.
New Hire Paperwork
Certain documents are mandatory when new employees are hired.
Form I-9 is used to verify employment eligibility. Each new hire must fill out this form and provide proof of identity such as a driver’s license and proof of eligibility, which is typically the Social Security card. The Internal Revenue Service does not allow the use of Individual Tax Identification Numbers in place of Social Security numbers. The I-9 is checked against a federal database using the E-Verify system to confirm validity of the information.
Federal Form W-4 is used to record individual information required for payroll processing. The information on this form allows employers to determine exemptions for computing income tax to withhold and forward to the IRS. In Wisconsin, the WT-4 must also be completed by new hires so that the company can withhold the correct amount of state income taxes.
New Hire Reporting
In Wisconsin, the new hire law requires all employers to report information about new hires and recalled employees to a state database within 20 days from the start of employment. This requirement is defined by the state’s Personal Responsibility and Work Opportunity Reconciliation Act and Wisconsin statutes.
This became mandatory to improve processing of child support withholding and other child support orders. The new hire directory reduces fraud in workers’ compensation, unemployment insurance claims and welfare services.
Facilitating New Hire Reporting
Compliance with new hire reporting and paperwork fulfillment takes up time and resources that are better used for critical onboarding tasks. At Integrated Payroll Services, we have established a service that will relieve businesses of new hire reporting and paperwork compliance.
Our professionals will manage your new hire reporting, including I-9 compliance and processing through the E-Verify system. New hires can complete this form online, which Integrated Payroll Services will then store as part of the employee’s individual record.
Payroll processing requires the information provided in employees’ W-4. It is also the same information needed for the state’s new hire directory. This means reporting becomes a straightforward and seamless process for clients of Integrated Payroll Services, a payroll services company located near Brookfield, Wisconsin.
Timely compliance with new hire reporting requirements will prevent costly penalties and unwarranted stress on employers.