COMPLIANCE CORNER
NEW AND REVISED STATE W4 FORMS
Avionté is working on New and Revised State W4 forms to include AR, CO, OK, and SC. Keep an eye on the Bold Bulletin for new releases and updates.
What It Is:
I-9: Under the Immigration and Reform Control Act, all employers must use Form I-9, Employment Eligibility Verification, to confirm an employee’s eligibility to work in the United States. This includes reviewing certain legal documents, such as driver’s license, Social Security card, birth certificate or green card, to establish identity and eligibility.
W-4: At the same time, the Internal Revenue Service (IRS) requires every employee to complete Form W-4, Employee’s Withholding Certificate., the number of withholdings the employer needs to apply to the employee’s earnings. The form, which affects how much federal income tax you withhold from an employee’s paycheck, includes information on marital status, number of dependents and additional withholding amounts.
When to Complete:
I-9: With this three-part document, the employee fills out Section 1 on the first day of work, and you must complete Section 2 within three days of this date. You’ll also need to check the documents the employee provides from the “List of Acceptable Documents.” (Section 3 is completed, as necessary, to update or reverify an employee’s work authorization.)
W-4: The new hire should fill out a W-4 on or before the first day of work. Be certain the employee signs the form because it’s considered invalid without a signature. You must process the W-4 by the start of the first payroll period ending on or after the 30th day from the date received.
Recordkeeping Considerations:
I-9: once you’ve completed an I-9 for U.S. citizens and lawful permanent residents, you’re done. For foreign workers with temporary authorization, however, the employee must indicate the expiration date under Section 1—and you must reverify eligibility on or before this date. You can do this by completing Section 3 or filling out a new I-9 altogether.
You must keep the I-9 on file for three years after the employee’s first day of work or one year after termination—whichever is later. After that, shred and discard the new hire paperwork because you could still be fined for improperly completed forms, even when they’re kept past the retention timeframe.
W-4: You need to maintain up-to-date W-4s that include recent changes to an employee’s personal or financial situation (such as moving, marriage, children, or divorce), so it’s a good idea to have employees resubmit a W-4 each year.
The IRS requires you to maintain employment tax records for at least four years after taxes were paid. In addition to W-4 forms, this includes records of employee wages and tips (if applicable)
Useful Knowledge Base Articles
eDocument - W-4 Income Tax Withholding Forms – Avionte Classic
State W-4 Documents – Avionte Aero
Adobe Sign: Creating & Mapping Adobe Sign Document Templates – Avionte Bold
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