The Government Stuff
Need some guidance on how government requirements apply to your
business? You've come to the right place. We've cut through the legal
jargon to help you handle the most common employment law issues with
Don't be intimidated - dealing with the government isn't so bad.
Calculate your employee's paychecks correctly: W-4 forms
The IRS requires every employee at the time of hire to complete a Form W-4, Employee's Withholding Allowance Certificate. The form indicates the employee's marital status and number of allowances, so you can determine the amount of federal income tax to withhold from the employee's paycheck. Tips:
- New employees should complete a W-4 on their start date
- Existing employees should revise their W-4 when they get married, divorced or have a child
- Maintain a W-4 for every current employee, and file it for four years after the employee leaves or is terminated
- Keep in mind your state may require its own withholding form
- Get your free Form W-4 Tip Sheet here with employer do's and don'ts and helpful hints to protect your business
- You can find form W-4 on the IRS website.
Verify your employee's eligibility: I-9 forms
Under federal law, you must verify and document that employees are eligible to work in the United States with a Form I-9, Employment Eligibility Verification. Failing to review certain documents, as listed on the form, can result in costly penalties. Tips:
- As of April 3, 2009, you must use the new mandatory Form I-9, which has been updated to meet new Department of Homeland Security (DHS) regulations
- Employees may now only present unexpired identification documents as proof of their eligibility
- Maintain an I-9 for every current employee, and if the employee leaves or is terminated, file it for three years after the hire date or one year after the employee leaves – whichever is longer
- For a list of common mistakes, completion instructions and helpful hints, download our free Form I-9 Tip Sheet here
- You can find form I-9 on the USCIS website.
Report your new hire to the state
All states require you to report new hires, which aids in the collection of child support and the monitoring of unemployment compensation, workers' compensation and other public programs. In most states, you can meet this requirement by submitting a copy of the employee's W-4. In addition, most states allow you to submit the documentation electronically. But be sure to find out your state's policy since laws differ.
Display updated labor law posters
If you have at least one paid employee, you must display the most current federal and state labor law posters at all company locations and in job applicant areas. These postings include minimum wage guidelines, overtime standards, OSHA regulations and many others. Failure to display these posters puts your business at risk for government fines.
With an average of 75 labor law changes a year1, it's hard to stay compliant. Luckily you can enjoy worry-free labor law compliance with Intuit Poster Compliance Service. There is no easier way to keep your business in posting compliance with labor laws. Intuit Poster Compliance Service includes: a Federal and State poster kit, $17,000 guarantee against fines2, FREE automatic poster replacements, and FREE shipping on all posters.
Visit www.intuitmarket.com/compliance or call 800.556.0879 to subscribe.
Get workers' compensation insurance
Protect your business if a worker gets injured on the job.
What is workers' compensation insurance and why do I need it? Required for almost all employers, workers' compensation insurance is insurance meant to protect your company from liabilities in case a worker suffers an injury while on the job. The premium you pay depends on the category of your employee. Without adequate workers' compensation insurance, if one of your employees is injured on the job, you may be held personally liable for both the cost of their medical care and for the lost wages while the employee is unable to work.
Click here to learn more about workers' compensation.
Will I need to make a large down payment? No. Some services, such as The Hartford's XactPAY Web® service, enable you to pay your workers' compensation premiums one payroll at a time, eliminating down payments. The The Hartford's XactPAY Web® service is free to Intuit QuickBooks Payroll subscribers with Hartford-issued workers' compensation policies.