What tax forms are required for new hires?

Required Tax Forms for New Hires in North Carolina

When hiring employees in North Carolina, it is essential to collect specific tax forms to ensure compliance with federal and state tax regulations. Proper handling of these forms supports accurate payroll processing and tax reporting.

Federal Tax Forms

• Form W-4 (Employee's Withholding Certificate): New employees must complete Form W-4 to determine the correct federal income tax withholding from their paychecks. Employers use this information to calculate withholding amounts accurately.
• Form I-9 (Employment Eligibility Verification): While not a tax form, Form I-9 is required to verify the employee's eligibility to work in the United States and should be completed and retained.

North Carolina State Tax Forms

• NC-4 (Employee's Withholding Allowance Certificate): North Carolina requires new hires to complete Form NC-4 to establish state income tax withholding allowances. Employers use this to withhold the correct amount of state income tax.

Operational Considerations

• Recordkeeping: Maintain copies of all completed tax forms securely as part of your employee records. This supports payroll accuracy and compliance during audits.
• Payroll Setup: Use the information from W-4 and NC-4 forms to configure payroll software for correct tax withholding at both federal and state levels.
• Reporting Requirements: Ensure timely submission of payroll tax reports to the IRS and the North Carolina Department of Revenue, reflecting accurate employee withholding.
• New Hire Reporting: Report new hires to the North Carolina New Hire Reporting Center within 20 days of hire to comply with state regulations and support child support enforcement.

As of 2026, regularly check for updates to federal and North Carolina tax forms and withholding rules to maintain compliance and optimize payroll operations.