When you hire a new employee, it is important to complete all required payroll forms. These forms include the New Hire Reporting Form, W-4, state withholding form (as applicable), and the I-9 form.
New Hire Reporting
New hire reporting was created in 1996 to improve the child support income withholding process. All employers are required to report new hires, rehires, re-called employees, and temporary employees within 20 days of hire. In Indiana, this information is reported to the Department of Workforce Development. A link to each state’s new hire reporting website is available on the US Office of Child Support Enforcement’s website. AccuPay also offers new hire reporting services to our clients.
Standard Occupational Classification (SOC)
Indiana, along with an increasing number of other states, is now requiring employers to provide each employee’s Standard Occupational Classification (SOC) code as part of quarterly unemployment tax reporting. AccuPay’s New Employee/Change Form now asks for this information, which is also required when entering new hire information directly into AccuPay’s online system. A listing of SOC codes can be found on the US Bureau of Labor Statistics website.
W-4 Employee’s Withholding Certificate
The W-4 form is used to determine the correct amount of federal income tax withholding to deduct from the employee’s payroll. This form should be completed by the employee when they are hired and anytime their financial situation changes. The W-4 form was completely updated in 2020 in response to the new income tax laws effective January of 2018. PLEASE READ OUR PREVIOUS PAYDAY EMAILS ABOUT THE NEW W-4 or click here to download the form.
WH-4 Employee’s Indiana Withholding Exemption and County Status Certificate
The WH-4 form is used to determine the correct amount of Indiana state and county tax to withhold from the your Indiana-resident employees. This form should be completed by the employee when they are hired and when the number of exemptions they are entitled to claim changes. This form also provides the option to have an additional flat dollar amount of state tax withheld from each payroll. It is very important that the employee complete his/her county of residence and primary place of employment for January 1 of every year since these counties control the employee’s county tax rates for the entire year.
Non-Indiana States/Local Taxing Jurisdictions
Most states have their own state tax withholding forms which employees should complete to ensure accurate state tax withholding. FOR ACCUPAY CLIENTS WHO HAVE EMPLOYEES OUTSIDE INDIANA——Please let us know ASAP if you hire an employee with a tax jurisdiction you have not already registered in, such as a new state or a new local taxing jurisdiction (Ohio, PA and KY have tons of local tax jurisdictions). Accupay has several state applications and employee withholding forms on our website. IDEALLY, you should be registered for state income and state unemployment taxes prior to hiring employees in new tax jurisdictions. Some states also require enrollment in Paid Family Leave and/or Disability plans. AccuPay will help you determine the correct taxing jurisdictions based on the employee’s home address and the primary work address of the new employee—send those addresses to us promptly – before the employee’s first day of work!! If entering new hires directly into the payroll system, make sure that both the correct home address AND work address are entered to ensure correct taxation. (Your Payroll Specialist will be happy to help you enter work locations.)
I-9 Employment Eligibility Verification and e-Verify
The I-9 form is used to verify an individual is eligible to work in the United States. The form should be completed no later than the time of hire for both citizens and noncitizens. A brand new I-9 form was recently released, which employers should begin using as soon as possible (Must begin using on November 1, 2023.) An employer must sign/date Form I-9 affirming they have examined original documents which authorize a person to work in the US. The completed form should be kept on file by the employer and it is subject to inspection by authorized government officials. A Spanish version of the I-9 form is also available, but the form must be completed in English to meet necessary requirements.
E-Verify is a federal, web-based system that compares information from the I-9 to records of the US Department of Homeland Security and Social Security Administration to confirm employment eligibility. While using this system is still voluntary in most states, several states do require it be used for all new hires. Effective July 1, for example, Florida is requiring all employers with 25 or more employees to use E-Verify and to provide an annual statement certifying that they are using it. Employers who employ workers in multiple states would be wise to enroll in the E-Verify system to ensure compliance with any state laws. Clients who utilize AccuPay’s Onboarding platform have the option of adding a connection to their online E-Verify account to simplify the process. Ask your Payroll Specialist for more information or contact Jessica at jessica@accupay.com.
Work Opportunity Tax Credits
Many for-profit employers can obtain substantial Federal tax credits for hiring lower wage people who are on some type of public assistance. IRS Form 8850 must be signed by the employee by his/her hire date to be eligible for the WOTC Federal Tax Credit. A sample cover letter and applicable forms are available on our website under WOTC Tax Credit Forms.
Direct Deposit – Employee Agreement
Every employee who wants AccuPay to direct deposit their payroll check should complete this form. The employer should then either securely email to the processor or fax it back to AccuPay at 317-885-7591, along with copies of the employee’s voided check to ensure accurate bank account information. Online employers may also enter this information directly into the payroll system.
ACA Notices
Employers of all sizes are required to provide new employees with “ACA notices” about the terms of any employer – sponsored group health insurance. The Department of Labor has 2 “model notices” which employers can use to fulfill this new employee notification requirement:
ACA notice – Employer has a plan
The DOL requires that a new employee be provided with the ACA notice within 14 days of their hire date.
Downloadable Forms
All these forms and others are available on the AccuPay website under Resources/Forms. If you process your payroll with AccuPay, our new employee and direct deposit forms are available at www.accupay.com If you have elected to use our Onboarding platform, new hires will be able to complete these forms electroncially. Once complete, custom workflows will ensure that the correct manager/supervisor is able to review and save to the payroll system.
Team-Up with AccuPay!
AccuPay offers flexiblity for clients who choose to have AccuPay enter new hire information. A perfect “new hire package” to send to AccuPay consists of the following forms (be sure to keep original copies!) :
AccuPay also offers a cloud-based Onboarding platform, available to clients using AccuPay’s PeopleCloud system, powered by isolved. This add-on feature allows you to share documents with new hires electronically and stores the completed data securely in your online account. To simplify the new hire process even more, our Benefits Enrollment platform provides online options to streamline this often cumbersome process. For more information on either of these add-on services, contact Jessica at hr@accupay.com or ask your Payroll Specialist.
This PayDay is for educational purposes only and does not constitute tax and/or legal advice. Any links to external resources are for educational purposes only. AccuPay is not affiliated with nor receives any renumeration from any outside sources. Please consult with your tax and/or legal advisor before applying any suggestions made here or through external links.
