Why this matters
Three common pieces of paperwork for US hires are the I-9, the W-4, and the state new-hire report. Requirements, exceptions, and deadlines vary, particularly for state forms and W-4 handling, so check current federal and state guidance or consult your payroll adviser. Missing or late paperwork can result in penalties. This is compliance, not a judgment call.
What "done" looks like
- I-9 Section 1 completed by the employee on or before the first day
- I-9 Section 2 completed by you within three business days of the start
- W-4 (plus any required state withholding form) collected before the first payroll
- State new-hire report filed within your state's deadline
How to do it
- Have the employee complete I-9 Section 1 by day one. It can be done any time after the offer is accepted.
- Examine documents and complete Section 2 within three business days. The employee chooses what to present from the I-9's Lists of Acceptable Documents; you cannot demand specific ones.
- Collect the W-4 and any required state withholding certificate before running the first payroll.
- File the new-hire report, federal law caps the deadline at 20 days, and many states require it sooner. Most payroll software files it automatically; confirm yours does.
- Store and retain correctly: keep I-9s separate from personnel files, for three years after hire or one year after separation, whichever is later.
Common mistakes
- Dictating which ID documents you'll accept is itself a violation.
- Letting a new hire work for weeks with no I-9 on file.
- Forgetting the state new-hire report, the least-known of the three, and still mandatory when applicable.
Real-world examples
- USCIS sets the I-9 deadlines. Form I-9 violations identified during audits can result in civil penalties, even when every hire was legally authorized to work.
- The 20-day federal ceiling on new-hire reporting comes from the 1996 welfare-reform law; states run the directories and many set shorter windows.
From a founder's point of view
Hiring paperwork is a part of running a business where the rules are spelled out. Treat it like a preflight checklist: confirm the required forms and deadlines for every hire.
Rule of thumb
By the end of the new hire's third day you should have a complete I-9, a signed W-4, and any required new-hire report filed or queued.
