What tax forms are required for new hires?

Tax Forms Required for New Hires in New Hampshire

When hiring employees in New Hampshire, it is essential to collect and manage the correct tax forms to ensure compliance with federal and state requirements. Proper handling of these forms supports accurate payroll processing and tax reporting.

Federal Tax Forms

• Form W-4 (Employee’s Withholding Certificate): New hires must complete Form W-4 to determine federal income tax withholding amounts. Employers use this information to calculate the correct withholding from each paycheck.
• Form I-9 (Employment Eligibility Verification): Although not a tax form, Form I-9 is required to verify the employee’s eligibility to work in the United States. Employers must retain this form for compliance and auditing purposes.

New Hampshire State Tax Considerations

New Hampshire does not impose a state income tax on wages, so there is no state withholding form equivalent to the W-4 for income tax purposes.

However, employers should be aware of the following:

• New Hampshire Business Tax Registration: Employers must register with the New Hampshire Department of Revenue Administration for business taxes, including employer withholding taxes on interest and dividends if applicable.
• Unemployment Insurance: Employers must register with the New Hampshire Employment Security (NHES) for unemployment insurance tax purposes and report new hires to the New Hampshire New Hire Reporting Program.

Operational Recommendations

• Collect a completed Form W-4 from every new employee before the first payroll.
• Complete and retain Form I-9 for every employee, following federal retention guidelines.
• Register your business with the New Hampshire Department of Revenue Administration and NHES promptly after hiring to ensure proper tax and unemployment insurance compliance.
• Submit new hire reports to New Hampshire’s New Hire Reporting Program within required timeframes to comply with state regulations.
• Maintain accurate payroll records and automate tax form collection and reporting where possible to reduce errors and improve efficiency.