Congratulations! Your company has expanded and you have got a new employee or, even better, new employees! But now that you have finished celebrating, there are some things you need to take care of before the new team member will be able to get down to work. Federal and state requirements can make bringing on a new hire feel more stressful than exciting, but with this quick breakdown from PayTech about New Hire Reporting, hopefully, you will be back to celebrating shortly!
Arizona New Hire Tax Forms
Before you issue the new hire’s first paycheck, be sure to have them complete a Form A-4. This is the Arizona new hire tax form that will establish how much money should be withheld from the employee’s paychecks for state taxes.
Arizona New Hire Reporting Requirements
Federal and state laws dictate that when you hire a new employee, you submit an Arizona-New Hire Reporting Form to the Arizona-New Hire Reporting Center. This is thanks to the 1996 “Personal Responsibility and Work Opportunity Reconciliation Act,” or PRWORA, with the intention of expediting the collection of child support and making possible child support income withholding if necessary.
The form itself is incredibly simple and straightforward. And the Arizona-New Hire Reporting Center’s website gives you multiple options for submitting the form. The toughest part about this one is remembering to do it … Consider yourself reminded!
Arizona E-Verify Requirement
Since 2008, the state of Arizona has required employers to use E-Verify to submit employees’ personal information online to have it checked against databases at the Social Security Administration and the U.S. Citizenship and Immigration Services. This is to help confirm the employee’s lawful presence in the United States.
Don’t Forget the Federal Forms!
When you are partying on with your state required forms, do not make the mistake of forgetting about federal requirements for new hires in all of the excitement of filling out the rest of the new hire reporting forms. In addition to the documents outlined above, you will want to make sure you have prepared for Uncle Sam:
The I-9 is technically called the Employment Eligibility Verification Form. Since 1986, every new employee has been required to fill the thing out to document the employees’ eligibility to legally work in the United States. Once your prospective employee brings all of the documents they need—some combination of identification as described in the document itself—filling out the form itself is, again, rather easy. Many Arizona business owners make the mistake of thinking that their E-Verify requirement replaces and makes null the requirement for an I-9 form, however, that is not the case. You must still collect and retain the I-9.
W-4 Tax Form: This form is similar to the A-4, but is the document necessary to determine the amount of money to be withheld from an employee’s paycheck to cover federal income tax obligations. Again, it is an easy form to think that you have already filled out if you completed the state’s counterpart, but it is no less necessary to new hire reporting requirements.
This form is similar to the A-4 but is the document necessary to determine the amount of money to be withheld from an employee’s paycheck to cover federal income tax obligations. Again, it is an easy form to think that you have already filled out if you completed the state’s counterpart, but it is no less necessary to new hire reporting requirements.
Notice of Coverage Options:
With the Affordable Care Act still intact and the law of the land, in addition to the previously outlined new hire reporting, there is a good possibility (if you are an employer that is subject to the Fair Labor Standards Act) that you must supply the new employee with what is known as a Notice of Coverage Options. This is a requirement for both full time and part time employees and regardless of if you as an employer offer group health plan coverage. The Department of Labor has two templates for employers, one for employers who do offer group health plan coverage and another for employers who do not offer group health plan coverage.
In a nutshell, the purpose of this document is to inform new hires about the Health Insurance Marketplace, details about coverage options offered by the employer and that they may be able to get lower-cost private insurance in the Marketplace and information detailing how they may lose employer contribution (if it exists) to their health benefits if they do indeed opt to buy insurance through the Health Insurance Marketplace.
If you have any questions about new hire reporting requirements or anything else that is related to payroll or human resources, be sure to check out the rest of our blog or to drop us a line. As nerdy as it sounds, payroll, tax planning, accounting and HR for business are our passions. For over 30 years, it has been our pleasure to help business owners stop exerting too much time with all of those things by providing the solutions so that they too can get back to what they are passionate about—running their businesses!