Record-Keeping Actions Required When Hiring Employees

At Hans & Associates, we work with clients to prevent legal or regulatory disputes and also represent our business clients when disputes arise.

We live in an administratively complex and legal world where many requirements are expected of business owners. Take the simple example of hiring a new employee. There are administrative actions that employers legally must take within certain deadlines. outlines some administrative steps for being in compliance with state and federal administrative laws.

I-9 Records

Based on federal law, you must verify your employee’s eligibility to work in the U.S. You have three days from the hiring date to complete the I-9 form. On 11/14/16 the USCIS released a new I-9 version and as of 1/22/17, employers must use this version. You keep the I-9 in your records for three years after the employees hiring date or for one year after the employee’s termination.

Record-Keeping Actions Required When Hiring Employees


W-4 Form

You must keep employment tax records for your employees and this includes W-4 forms, which include allowances an employee is claiming. This information is vital for determining the amount of money to withhold from paychecks. The IRS requires employers to keep W-4’s and other employee tax records for a minimum of four years after paying taxes.

Withholding from Wages for Taxes

You must add the employee to your payroll and withhold from wages the proper amount to remit to taxing authorities. Taxes withheld include income tax, Medicare, Social Security and state income tax.

Report the Hiring to the NY Department of Taxation and Finance

You must report the employee’s first name, middle initial and last name, employee’s address, employee’s Social Security number, and hire date along with your company name, address, employee identification number and whether you provide independent health insurance benefits for the employee and the qualification date. You have 20 calendar days from hiring the employee to report this information. The state department uses this information for following up on employees who owe child support and have payments taken out of their paychecks.

Posting Federal and State Labor Notices

Even starting with your first employee, your business must display federal and state notices such as minimum wages and anti-discrimination laws. In addition, you must display them where employees can see them. provides a service to help you stay up-to-date with posters.

Stephen Hans & Associates is an employment and labor law firm. Our firm has assisted small and medium sized businesses with employment law issues for more than 20 years.



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