What documents are needed when hiring new employees?

Required Documents When Hiring Employees in Maryland

When hiring new employees in Maryland, it is essential to collect specific documents to ensure compliance with federal and state regulations. Proper documentation supports payroll, tax reporting, and employment eligibility verification.

Key Documents to Collect

• Form I-9 (Employment Eligibility Verification): Verify the employee’s identity and authorization to work in the United States. Retain this form as part of your records.
• Form W-4 (Employee’s Withholding Certificate): Collect this to determine federal income tax withholding amounts for payroll processing.
• Maryland Form MW507 (Employee’s Withholding Exemption Certificate): This form is used to calculate state income tax withholding specific to Maryland.
• Employment Agreement or Offer Letter: Outline job duties, compensation, and terms of employment to maintain clear expectations.
• Direct Deposit Authorization: If applicable, obtain employee consent and banking information for payroll automation.
• Emergency Contact Information: Collect for safety and communication purposes during employment.

Additional Operational Considerations

• Employee Classification: Confirm whether the worker is an employee or contractor to apply correct tax and payroll procedures.
• Recordkeeping: Maintain all hiring documents securely for at least three years, as required by federal and Maryland labor regulations.
• New Hire Reporting: Report new hires to the Maryland New Hire Registry within 20 days to comply with state requirements.
• Payroll Setup: Use the collected tax forms to configure payroll systems accurately, ensuring proper tax withholding and reporting.
• Compliance with Maryland Labor Laws: Stay updated on wage, hour, and workplace posting requirements to avoid penalties.

As of 2026, these documents and processes form the foundation for compliant and efficient employee onboarding in Maryland.