Hiring Employees for the First Time?

Hiring Employees for the First Time? Here's What You Need to Know

You’ve reached a major milestone in your business: it’s time to hire your first employee. Congratulations! This is a big step, and naturally, it comes with a lot of questions — especially if you’re unfamiliar with the hiring and payroll process.

If you’re already paying yourself through payroll, you’ll find parts of this process familiar. If not, don’t worry — we’ll walk you through the basics, starting with the paperwork.

New Hire Paperwork & Required Documentation

When you bring on a new employee, there are a few critical documents you need to collect and complete. These forms not only help you stay compliant but also ensure your employee gets paid properly and legally.

1. Form I-9 (Employment Eligibility Verification)

This form confirms that your new hire is legally authorized to work in the United States. You’ll need to:

• Review and verify the documents your employee provides (see the list on the form).

• Common combinations include:

  • A U.S. passport (covers both ID and work eligibility), or

  • A driver’s license plus a Social Security card.

• Make a copy or scan of the documents for your records.

• Complete the employer section of the I-9 and sign it.

Important: Do this on or before their first day of work. If the employee doesn’t return, you’ll still be responsible for paying them for any time worked — and you won’t have what you need to run payroll.

You can also use E-Verify.gov — a free tool that electronically verifies an employee’s work eligibility.

2. Form W-4 (Employee’s Withholding Certificate)

This form tells your payroll provider how much to withhold for federal (and possibly state) income tax. The IRS revised the form in 2020, so even seasoned business owners might find it a bit confusing.

Here’s what your employee needs to do:

• Step 1: Fill in personal information. Make sure they don’t skip the Social Security number box — it’s often missed.

• Steps 2–4: Complete based on their tax situation.

• Step 5: Sign and date the form.

If they’re unsure how to fill it out, point them to the IRS Tax Withholding Estimator. This tool walks them through a few questions and produces a completed W-4 they can print.

3. Direct Deposit Authorization

If you plan to pay your employees via direct deposit, you’ll need their bank account information. Most payroll providers offer a form for this, which your employee will complete and sign to authorize payments.

Bonus: Consider Creating an Employee Handbook

While not required, an employee handbook can save you future headaches. Even a simple one-page document outlining expectations and company policies can be helpful.

Topics to include:

• Paid and unpaid time off

• Holiday schedules

• Code of conduct

• Work hours and break times

You’ll find plenty of free templates online that can be tailored to fit your business.

What’s Next?

Now that you’ve taken care of the initial hiring paperwork, it’s time to dive into your next responsibility as an employer: payroll taxes. We’ll cover that in the next post — stay tuned!

Ready to Hire - But Bot Ready to Handle Payroll Alone?

Hiring your first employee is exciting, but managing payroll, taxes, and compliance on your own doesn’t have to be part of the job description.

Let’s make it simple.

Schedule a free discovery call to see if King and McCleary Payroll is the right fit for your business.

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