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Process Employment Eligibility Verification Form I-9

All U.S. employers are responsible for completion and retention of Employment Eligibility Verification Form I-9 for each individual hired for employment in the United States. This includes citizens and noncitizens.

On the form, the employer must verify the employment eligibility and identity documents presented by the employee and record the document information on Form I-9. Form I-9 must be kept by the employer and made available for inspection by authorized U.S. government officials, either for three years after the date of hire or for one year after employment is terminated, whichever is later.

Completing these steps correctly is very important. Under the Immigration and Nationality Act, employers may be fined for knowingly employing unauthorized aliens. Fines can range from $375 for first-time offenders to $16,000 for businesses with multiple offenses. Fines apply on a per-alien basis, so they can quickly multiply. For example, an employer with multiple previous violations employing five illegal workers could be fined as much as $80,000.

• IRS Form I-9 Employment Eligibility Verification
• IRS Form I-9 Q&A Feb 11, 2009
• April 3, 2009 Form I-9 update information

E-Verify is an Internet-based system operated by the U.S. Citizenship Immigration Services under the Department of Homeland Security in partnership with SSA. E-Verify is currently free to employers and is available in all 50 states, the District of Columbia, Puerto Rico, Guam and the U.S. Virgin Islands. E-verify electronically compares information contained on the Form I-9 with records contained in SSA and Department of Homeland Security (DHS) databases to help employers verify identity and employment eligibility of newly hired employees.

Use of E-Verify is voluntary, but employers should be aware that some states, such as Arizona and Mississippi, are making it mandatory for employers to use E-Verify. Use of E-Verify does require employers to register and sign a Memorandum of Understanding (electronic terms of program use) and follow certain guidelines, but it is the best means available for determining employment eligibility of new hires and the validity of their Social Security numbers. It is also very fast, providing verification within seconds.

• Dept of Homeland Security E-verify home page
• Manual to use E-Verify

Collect W- 4 Withholding Form from Employees

Federal income tax must generally be withheld from your employee’s wages. Social Security and Medicare are also withheld, with a matching amount paid by the business. Reporting for these taxes is separate, as is payment. In each instance there are forms that the employee and employer are required to complete. For information on these and other government-required employment forms, see the Checklist or contact your tax advisor.

• IRS Form W4
  1- 800-TAX-FORM

Perform New Hire Reporting

New hire reporting is the process by which you, as an employer, report information on newly-hired employees to a designated state agency shortly after the date of hire. This information is used by state child support enforcement agencies in locating parents who owe child support.

Federal law requires employers to collect and provide six pieces of information about their new hire to fulfill reporting requirements. Many states require additional information beyond the six outlined here:

• Employer Name as associated with the Federal Employer Identification Number
• Employer Address
• Federal Employer Identification Number
• Employee Name
• Employee Address
• Employee Social Security Number

In many cases, companies can use an employee’s W-4 as their official new hire report.

• US Dept of Health & Human Services State New Hire Reporting Info

Proactively Provide Valuable Tax Information to Employees

The Earned Income Tax Credit is a refundable tax credit that serves to supplement the income of single parents and couples with qualifying children. In California, employers are required to notify all employees that they may be eligible for this credit.

This credit can help your employees to increase their take-home pay at no cost to you and is a key tool in preventing poverty, especially for single parents and young families. The Advance EITC is a program which allows employees who expect to qualify for the EITC to receive part of that credit in each paycheck.

• IRS EITC Information for Employers

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