New Employee Compliance

Hiring new employees can usually create a lot of confusion due to the amount of forms, information and data that must be gathered. However, make sure you at least have these forms to ensure adequate payroll compliance:

  • Notice of Coverage Options

As required by ObamaCare, employers must inform employees of the availability of the Health Insurance Marketplace.  The three page form can be obtained from the Department of Labor (

  • I-9 Form

The I-9 is pretty standard and confirms that your new employee is eligible to work in the US legally.  Section 1 must be completed by the end of the first day of work and Section 2 within 3 days.

  • W-4

Sometimes confused with a W-2, a W-4 is required to be completed by all new employees. A W-4 is used to calculate the amount of federal income tax to withhold from an employee’s paycheck.  This form should also be completed by employees who wish to change their federal tax withholding at a later date.


  • State-Specific Forms

If your state requires that employees pay income taxes, the state version of form W-4 will be also need to be completed.  This form will tell payroll how much state income tax should be withheld from each paycheck.


  • New Hire Reporting

Most states require companies to report new employees hired.  This is usually done through the state’s unemployment department.


Add to this list the requirements that you must also follow for Medicare and deemed status associations such as The Joint Commission, CHAP and ACHC, which all require additional documentation to be compliant. If you feel as though your personnel files could use an audit and you might be facing some exposure to potential non-compliance, please contact us.