What tax forms are required for new hires?

Tax Forms Required for New Hires in North Carolina

When hiring employees in North Carolina, it is essential to collect and manage the proper tax forms to ensure compliance with federal and state tax regulations. These forms support accurate payroll processing, tax withholding, and reporting.

Federal Tax Forms

• Form W-4 (Employee’s Withholding Certificate): Every new employee must complete Form W-4 to determine the correct federal income tax withholding from their wages. Employers use this form to calculate payroll tax deductions.
• Form I-9 (Employment Eligibility Verification): While not a tax form, Form I-9 is required to verify the employee’s identity and authorization to work in the U.S. It should be completed on or before the first day of employment.

North Carolina State Tax Forms

• NC-4 (Employee’s Withholding Allowance Certificate): North Carolina requires new employees to complete Form NC-4 to establish the correct state income tax withholding. This form should be collected at the time of hire.

Operational Considerations

• Timely Collection: Collect all required forms before or on the employee’s first day to avoid payroll withholding errors and reporting delays.
• Recordkeeping: Maintain copies of W-4, NC-4, and I-9 forms in secure personnel files for compliance and audit purposes.
• Payroll Setup: Use the information from these forms to configure payroll software for accurate federal and state tax withholdings and reporting.
• Reporting Requirements: Report new hires to the North Carolina New Hire Reporting Program within 20 days of hire to comply with state regulations and support child support enforcement efforts.

As of 2026, ensure you use the latest versions of these forms, as federal and state tax withholding rules may update periodically.