What tax forms are required for new hires?

Tax Forms Required for New Hires in Oregon

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

Federal Tax Forms

• Form W-4 (Employee’s Withholding Certificate): Every new employee must complete a W-4 form. This form determines the federal income tax withholding from the employee’s paycheck. Employers use the information to calculate the correct withholding amount.
• Form I-9 (Employment Eligibility Verification): Although not a tax form, the I-9 verifies the employee’s eligibility to work in the U.S. It must be completed and retained by the employer.

Oregon State Tax Forms

• Oregon Form OR-W-4 (Employee’s Withholding Allowance Certificate): Oregon requires employees to complete this form to determine state income tax withholding. Employers must have this on file to withhold the correct amount of Oregon state income tax.
• Oregon New Hire Reporting: Employers must report all new hires to the Oregon New Hire Reporting Center within 20 days of the hire date. This supports child support enforcement and other state programs.

Operational Considerations

• Recordkeeping: Maintain copies of all tax forms securely for at least four years to comply with IRS and Oregon Department of Revenue requirements.
• Payroll Setup: Use the collected withholding information to configure payroll software correctly, ensuring accurate tax deductions and filings.
• Automation: Consider automating new hire form collection and submission to reduce errors and improve compliance.