Why this matters
Three pieces of paperwork are legally mandatory for every US hire: the I-9, the W-4, and the state new-hire report. Each has a hard deadline measured in days and penalties for being missing or late. This is pure compliance — no judgment calls.
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 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 your state's 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 — that 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.
Real-world examples
- USCIS sets the I-9 deadlines, and ICE audits fine employers per missing or defective form — 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 the rare part of running a business where the rules are completely spelled out. Treat it like a preflight checklist: same three forms, same deadlines, 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 the new-hire report filed or queued.