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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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More Questions

What is Form 990 and when is it due?

Form 990 is the annual information return tax-exempt organizations file with the IRS. It's due on the 15th day of the 5th month after your fiscal year ends, which means May 15 for calendar year organizations.

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How much does catch-up bookkeeping cost?

Catch-up bookkeeping is priced per project, typically ranging from $750 to $5,000 or more depending on how far behind you are, transaction volume, and business complexity. The condition of existing records also affects the cost.

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How do I import transactions into QuickBooks?

Bank feeds are the easiest way to import transactions automatically. For manual imports, download a CSV from your bank, use the Upload from File feature, and map your columns correctly before adding transactions to your books.

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What is prime cost and why does it matter?

Prime cost is your cost of goods sold plus labor costs. For restaurants, it's typically the two largest controllable expenses and should stay between 55% and 65% of sales for healthy profitability.

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What payroll taxes do I need to pay in California?

California employers pay four state-specific payroll taxes on top of federal requirements. Unemployment Insurance and Employment Training Tax come from your pocket, while SDI and Personal Income Tax get withheld from employees.

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What is the difference between nonprofit and for-profit accounting?

The biggest difference is fund accounting. Nonprofits track money by restriction type and allocate expenses by function. Financial statements use different names and there's no owner equity, just net assets.

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Fresh Ledger provides full-service bookkeeping for San Diego County's small businesses. We handle monthly financials, payroll setup, and part-time CFO services for local business owners who want their numbers done right.

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