What documents are needed when hiring new employees?

Required Documents When Hiring Employees in Arkansas

When hiring new employees in Arkansas, it is essential to collect and maintain specific documents to ensure compliance with federal and state regulations. Proper documentation supports payroll processing, 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 for the required period.
• Form W-4, Employee’s Withholding Certificate: Collect this form to determine the correct federal income tax withholding from the employee’s paycheck.
• Arkansas State Tax Withholding Form (AR4EC): Arkansas requires employees to complete a state withholding certificate for proper state income tax withholding.
• Employment Application or Resume: Maintain for recordkeeping and to support hiring decisions.
• Offer Letter or Employment Agreement: Document terms of employment, including position, salary, and start date.
• Direct Deposit Authorization: If offering direct deposit, obtain employee authorization and banking details.
• Emergency Contact Information: Keep updated contact details for workplace emergencies.
• Employee Handbook Acknowledgment: Confirm the employee has received and understands workplace policies.

Additional Operational Considerations

• Workers’ Compensation Insurance: Arkansas requires employers to carry workers’ compensation insurance and notify employees of coverage.
• New Hire Reporting: Report new hires to the Arkansas New Hire Reporting Program within 20 days to comply with child support enforcement requirements.
• Recordkeeping: Maintain all employment-related documents securely for at least three years, including payroll records and tax forms.
• Employee Classification: Properly classify workers as employees or independent contractors to avoid payroll and tax compliance issues.
• Payroll Setup: Use collected documents to accurately set up payroll, withholding taxes, and benefits enrollment.

As of 2026, ensure all forms are the latest versions and remain updated on any changes in Arkansas employment regulations or federal requirements.