What tax forms are required for new hires?

Tax Forms Required for New Hires in Pennsylvania

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

Federal Tax Forms

• Form W-4 (Employee's Withholding Certificate): New employees must complete this form to determine the correct federal income tax withholding from their paychecks. Employers use this information to calculate payroll taxes accurately.
• Form I-9 (Employment Eligibility Verification): Required for verifying the employee's identity and authorization to work in the U.S. While not a tax form, it is critical for compliance and should be completed at hiring.

Pennsylvania State Tax Forms

• PA-100 (Employer Withholding Tax Return): Employers must register for withholding tax and remit withheld taxes to the Pennsylvania Department of Revenue. While this is a reporting form, it relates directly to new hire tax withholding obligations.
• Form REV-419 (Employee's Withholding Exemption Certificate): This form is used by employees to claim Pennsylvania state income tax withholding exemptions or allowances. Employers use it to determine the correct state tax withholding.
• Local Earned Income Tax Forms: Depending on the employee’s locality, employers may need to withhold local earned income taxes. Employees may need to complete local withholding exemption forms if applicable.

Additional Operational Considerations

• New Hire Reporting: Pennsylvania requires employers to report newly hired employees to the state's New Hire Reporting Program. This supports child support enforcement and helps maintain compliance.
• Payroll Setup: Use the collected W-4 and REV-419 forms to configure payroll systems for accurate tax withholding and reporting.
• Recordkeeping: Maintain copies of all tax forms securely for at least four years to comply with IRS and Pennsylvania Department of Revenue requirements.
• Automation: Consider using electronic onboarding and payroll software to streamline form collection, tax calculations, and filing obligations.

As of 2026, staying updated on any changes to federal or Pennsylvania tax form requirements is critical for smooth hiring operations and compliance.