Tips When You Hire Employees in U.S.

Tips When You Hire Employees in U.S.

 

As a business owner, you must obtain the following information when you hire employees:

 

  1. Eligibility to Work in the United States

 

You must use Form I-9 to verify the identity and employment authorization of individuals hired for employment in the United States. Both employees and employers (or authorized representatives of the employer) must complete the form.

 

  1. Employee’s Social Security Number

 

You are required to get each employee’s name and Social Security Number (SSN) and to enter them on Form W-2. You should ask your employee to show you his or her social security card and record the information.

 

Please note that an individual with an ITIN who later becomes eligible to work in the United States must obtain an SSN.

 

  1. Employee’s Withholding

 

You should have a Form W-4, Employee’s Withholding Certificate, on file for each employee. Ask all new employees to give you a signed Form W-4 when they start work. Make the form effective with the first wage payment. If employees claim exemption from income tax withholding, they must indicate this on their W-4. The amount of income tax withholding must be based on filing status and withholding adjustments as indicated on the form. If a new employee does not give you a completed Form W-4, withhold tax as if he or she is single. Additional withholding may be required on wages paid to non-resident aliens.

 

A Form W-4 remains in effect until the employee gives you a new one. If employees claim exemption from income tax withholding, they must give you a new Form W-4 each year.

 

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