Employee Eligibility and Tax Withholding: an Employer’s Checklist
When hiring a new employee, it is important to gather specific information related to tax withholding and the individual’s eligibility to work in the United States. For each new employee you should obtain and retain the following documents:
- Form W-4 Employee’s Withholding Allowance Certificate
- State-specific tax withholding form (if applicable)
- Form I-9: Employment Eligibility — verification must be completed by the employer no later than the first day of employment
- New-hire reporting with the appropriate state agency (if applicable); in Illinois this must be done within 20 days to the Department of Employment Security
- You are required to get each employee’s name and Social Security Number (SSN) for future use on Form W-2; this requirement also applies to resident and nonresident alien employees. You should ask your employee to show you his or her Social Security card. Do not accept an ITIN in place of an SSN as an ITIN is only available to resident and non-resident aliens who are not eligible for U.S. employment.
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