What forms do I need for new employees?
The core forms every employer needs are the federal W-4 and I-9. California adds its own requirements including the DE 4 and several notices that many other states don’t have. Getting these right from day one prevents problems with payroll, taxes, and compliance audits.
The W-4 is where employees tell you how much federal income tax to withhold from their paychecks. They fill it out, you keep it on file, and you use the information to calculate withholding each pay period. You don’t send this to the IRS unless they specifically request it during an audit.
Form I-9 verifies employment eligibility. Every employee must prove they’re authorized to work in the United States. They complete Section 1 on or before their first day of work. You complete Section 2 within three business days of their start date after reviewing their identity and work authorization documents. Keep I-9s for three years after hire or one year after termination, whichever is later.
The California DE 4 is the state version of the W-4 for California income tax withholding. Employees don’t have to fill one out if they want to use the same allowances as their federal form, but having one on file is cleaner and avoids confusion later.
California also requires you to give new employees several notices at the time of hire. These include the Wage Theft Prevention Act notice showing their rate of pay and pay schedule, the Time of Hire Pamphlet about unemployment and disability insurance, the Paid Family Leave pamphlet, the Sexual Harassment pamphlet, and a workers’ compensation notice with your carrier information. Missing these can result in penalties if an employee files a complaint.
You also need to report new hires to the California Employment Development Department within 20 days of their start date using Form DE 34 or through their online system. This is for child support enforcement and is legally required even if the employee has no child support obligations.
Beyond the legally required forms, most employers collect direct deposit authorization and emergency contact information. If you have an employee handbook, getting a signed acknowledgment that they received it protects you if disputes arise later.
The paperwork feels overwhelming when you’re hiring your first employee. Payroll setup and training can help you understand what’s required and build a system that keeps you compliant without drowning in forms. Having a new hire checklist saves time and prevents missed steps. California has stricter requirements than most states, so generic templates from national HR sites often miss things that apply here in San Diego.
Working with a small business bookkeeper familiar with California requirements means your employee records and payroll integrate properly with your books from the start. You won’t be scrambling to fix withholding errors or reconcile payroll at year end.
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