Employment Tax Forms Used When Hiring Employees

The following forms are required to be completed by both the employer and the newly hired employee:

  • Form W-4
  • Form I-9
  • State withholding Form
    • Not required in states that do not have a personal income tax.
    • Check with your state.

1) Form W-4, Employee's Withholding Allowance Certificate 

  • Each new hire must complete a Form W-4.
  • Withhold federal income tax based on each employee's Form W-4.
  • A new W-4 must be completed whenever an employee wants to change exemption allowances.
  • Keep the original in your files.

2) Form I-9, Employment Eligibility Verification

  • This must be completed by both the employer and employee.
  • This is a U.S. Citizenship and Immigration Services form (USCIS).
  • This form must be completed by the employee and employer.
  • As an employer you are responsible for verifying that each new employee is legally eligible to work in the United States.
  • Keep the original in your files along with a copy of the appropriate identification document(s).
  • How to get Form I-9:
    • Visit the U.S. Citizenship and Immigration Services website:

3) State withholding:

Generally, there is a state version of the federal form W-4. If you live in a state that has no personal income tax this does not apply.

Advance Earned Income Credit Payments Eliminated

On August 10, 2010, President Obama signed legislation to terminate the Advance EIC payment program. However, individuals may continue claiming the earned income credit on their Form 1040 each year. 

Name and Social Security Number

Make sure you record each new employee's name and number from his social security card.

Any employee without a social security card should apply for one with the Social Security Administration.

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