Federal and State New Hire Reporting Requirements
Payroll Masters can automatically report your new hires to the California Employment Development Department (EDD) electronically for an additional fee. Fines for not accurately reporting SSN on new hire reports can be considerable.
Under federal and state law, employers are required to report their new hires to the state within 20 days of their hire or rehire date and at the end of each quarter. Multi-state employers may elect to report all newly hired employees to one state. New hire reports must include employee social security numbers (SSN).
Form I-9 is used for verifying the identity and employment authorization of individuals hired for employment in the United States. All U.S. employers must ensure proper completion of Form I-9 for each individual they hire. This includes citizens and noncitizens. Both employees and employers must complete the form. The employee must also present his or her employer with acceptable documents evidencing identity and employment authorization. Employers must retain Form I-9 for a designated period and make it available for inspection by authorized government officers.
The W-4 gives the withholding status your employee wishes to claim and the number of exemptions, so that you the employer can withhold the correct federal income tax from their pay. As an employer, it is your obligation to obey your employee’s wish and withhold according to their W-4. Employees should consider completing a new Form W-4 each year and when personal or financial situations change.
Please teach your new and existing employees how to read their check stub. It is each employee’s responsibility to verify that his or her SSN and withholding status are correct. Please ask your employees to verify this information on their first paycheck and report those changes to you.
How to Verify an Employee’s SSN
To verify that an employee’s SSN matches the name given, please visit www.ssa.gov/employer/ssnv.htm or call the SSN verification hotline at (800) 772-6270.
Notice to Employee
Section 2810.5 of the California Labor Code requires that employers provide notice to employees of their rate(s) of pay, designated pay day, the employer’s intent to claim allowances (meal or lodging allowances) as part of the minimum wage, and the basis of wage payment (whether paying by hour, shift, day, week, piece, etc.), including any applicable rates for overtime. The law requires that the notice contain the employer’s “doing business as” names, and that it be provided at the time of hiring and within 7 days of a change if the change is not listed on the employee’s pay stub for the following pay period. The notice must be provided in the language the employer normally uses to communicate employment-related information to the employee, through translated notices provided by the Department of Labor.
Department of Labor Health Insurance Marketplace Notices
If your company is covered by the Fair Labor Standards Act, it should provide a written notice to its employees about the Health Insurance Marketplace by October 1, 2013, but there is no fine or penalty under the law for failing to provide the notice.