Employees and employers both have legal responsibilities when it comes to employment. United States law requires two forms to be filled out at the time of hiring, and either kept on file or sent to the relevant agency.

Employment Eligibility and Identity Verification

The first one is from the US Citizenship and Immigration Services (USCIS) and is a Form I-9, which verifies the identity of the employee and proves their eligibility for employment. The employee supplies the proper documents, and affirms them with their signature. The employer examines the documents and records the information on the form.

Form I-9 is generally completed at the beginning of an employment relationship. Documents like a US passport or Permanent Resident Card (Form I-551) can verify both identity and eligibility to work. Or, a combination of documents (state-issued photo ID, plus birth certificate or Social Security Card, for example) can be provided. For employees under age 18, certain school IDs or school, daycare, or hospital records can be used in lieu of state-issued ID (these options are listed with the form’s instructions). Employers should be familiar with proper documents and be able to reasonably assess their legitimacy. Additional information for employers is available from the Society for Human Resources Management.

Employees’ Withholding

The other is Form W-4 which is filed with the IRS. This deals specifically with the payroll taxes that will be withheld from an employee’s paycheck. The employee follows instructions with a worksheet to determine how much of their earnings will be sent to the US Treasury. This varies with family size, the number of income earners in the household, and filing status. When this is done accurately, employees should avoid having a large tax bill (or refund) due at tax time. The IRS has a Withholding Calculator that can help.

Form W-4 is completed at hiring, and can be completed every year or at any point that one’s family or financial situation changes. In fact, the IRS encourages taxpayers to do a “Paycheck Checkup” on a regular basis to avoid any tax season surprises.

Avoid Penalties

Failing to maintain proper I-9 records or knowingly hiring a person ineligible to work in the US comes with serious penalties. Additionally, providing false information or failing to supply information that can impact your withholding is also a punishable offense, so making sure your documents and information are in order and up to date is well worth the effort.