What forms do I need when I hire a new employee?
Every employee needs to complete Form W-4 before receiving their first paycheck. This tells you how much federal income tax to withhold based on their filing status and any adjustments they claim. Keep the completed form in your files. You don’t send it anywhere unless the IRS specifically requests it.
Form I-9 verifies the employee is authorized to work in the United States. The timing on this one is strict. The employee fills out Section 1 by their first day of work. You complete Section 2 within three business days of their start date after reviewing their identity and work authorization documents. Keep I-9s on file for three years after hire or one year after termination, whichever is later. Mess up the timing and you’re exposed to penalties if you’re ever audited.
Virginia requires Form VA-4 for state withholding. It works similarly to the federal W-4 but determines Virginia income tax withholding. If an employee doesn’t give you a VA-4, you have to withhold at the highest rate, which most employees won’t appreciate when they see their first paycheck.
You also need to report new hires to Virginia’s New Hire Reporting Center within 20 days of their start date. This isn’t a form the employee fills out. You submit their name, address, Social Security number, and your employer information through Virginia’s online system. The state uses this data to locate parents who owe child support and to detect unemployment fraud.
Beyond government-required forms, most employers collect a few additional items. Direct deposit authorization so you can pay employees electronically. Emergency contact information. Benefits enrollment paperwork if you offer health insurance or retirement plans. These aren’t legally mandated but they’re standard practice for small business owners running a legitimate operation.
The forms themselves are straightforward. The harder part is making sure withholding calculates correctly each pay period and that filings happen on schedule. Many business owners in Richmond find that working with payroll services takes this off their plate entirely, especially when they’re focused on running the business rather than tracking compliance deadlines.
Keep copies of all completed forms organized by employee. A simple folder system works fine. Digital copies are acceptable as long as they’re backed up and you can access them quickly if someone asks.
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