Welcoming new hires into the business can be time-consuming. Not only are preparations required for the new hire’s first few days or months but there are also many responsibilities employers must take on upon hiring new talent.

Onboarding Compliance Checklist for Employees

It is best to follow a detailed checklist in order to satisfy the requirements needed when onboarding new employees. This way, employers can ensure compliance is met with the company’s policies as well as federal, state, and local regulations.

Here are some crucial items that should be on every employer’s onboarding checklist for compliance.

Preboarding New Hires

Before the onboarding process officially begins, employers should conduct a preboarding process that will assist new hires before they truly begin their first day on the job. Employers typically communicate preboarding tasks through email, via a job portal, or, in some cases, in person.

Preboarding tasks are designed to guide new hires before they attend their first day. Typically, these preboarding items will include simple, non-regulatory documents that may include:

• An offer letter detailing employment terms for the new role
  
  • Some employers may use an offer letter to fulfill the required notice for initial pay rates if their state has wage theft prevention laws
• The employment agreement
  
  • Can include notices for At-Will employment
• A schedule for the first day or week of onboarding
• Any lists for contact information of other staff members the new hire will be working with
• A map of the worksite

However, some employers may request employees to fill out legal documentation before starting their onboarding process on their first day.

Onboarding Process Requirements for Compliance

Below are must-have requirements to include in your onboarding checklist:

1. Completion of New Hire Forms
2. New Hire Reporting
3. Review of Employee Handbook
4. Compliance Training

Completion of New Hire Forms

It’s standard for every new employee to fill out important paperwork required for employment. These documents are essential for employers to maintain recordkeeping requirements and compliance with federal, state, and local regulations.

Here are the required forms you need for your onboarding checklist:

Employee Information Form

As required by the Fair Labor Standards Act (FLSA), employers must maintain records for each employee. Unlike other federally mandated forms, there is no specific form for employers to fill out; Employers should adopt their own documentation that requests all key employee information needed to stay compliant with FLSA.

Information required from new hire employees for recordkeeping purposes include:

• The full name of the new hire
• Social security number
• Address including the zip code
• Sex and occupation
• The start time and day of an employee’s workweek
• Employee wage information

Much of the information above is also necessary when reporting new hires.

In addition to the information needed above to satisfy FLSA recordkeeping requirements, employers should also ensure they collect the following information for new hire reporting purposes:

• Phone number
• Email address
• Date of birth
• Emergency contacts
• Marital status
• Health information (allergies, for example)
• Direct deposit information
• Copy of background check

Form I-9 Employment Eligibility Verification

One of the most important tasks is maintaining Form I-9 compliance, including taking the proper steps to fill out Form I-9.  As required by the FLSA, the purpose of the I-9 is to verify identity and employment authorization in order to work in the United States.

Apart from submitting basic employee information, new hires must submit one or a combination of authentic documents to their employer to prove their identity and employment eligibility. Documentation types are divided as such with examples provided:

List A Documents: Prove both identity and employment eligibility

• US passport
• Foreign passport with an I-551 stamp or Form I-94 / I-94A with an arrival date, departure date, and an endorsement to work
• Permanent resident card or alien registration receipt card
• Employment authorization document with a photograph

List B Documents: Prove identity

• State-issued driver’s license
• An ID card issued by federal, state, or local government agencies
• School ID card with photograph
• Voter’s registration card
• US Military card or military dependent’s ID card

List C Documents: Prove employment eligibility

• US social security card
• Birth certificate issued by the Department of State or an original or certified certificate issued by the state, county, local, or US territory
• US citizen ID card
• Native American tribal document
• Employment authorization document issued by the Department of Homeland Security

All employers must ensure new hires are given instructions before filling out the form.

E-Verify

In addition to Form I-9, employers may need to use E-Verify to confirm the employment eligibility of new hires. Some states require employers to use E-Verify. Employers must check with their state’s regulations if E-Verify is needed for your business.

Form W-4 Tax Withholding

New hires must also fill out Form W-4 upon beginning employment. This form is crucial for tax withholding purposes on an employee’s income. This allows the employer to calculate how much of their income will be withheld for federal, state, and local taxes. Once a new hire fills out the required items on Form W-4, an employer can accurately calculate the withholding amount needed and record it on Form W-2.

It is important to note that some states have their own state withholding tax form. All employers must verify if their state requires a unique income tax withholding form to be filled out by checking their state’s Department of Labor website.

Form W-2 Wage and Tax Statement

Upon the new hire’s completion of Form W-4, the employer is then ready to prepare Form W-2. The critical information that must be recorded on Form W-2 includes the amount of wages paid to the employee and the taxes withheld from their earnings each year.

Since an employee’s social security and medicare benefits are calculated using the information provided to them on Form W-2, it must be a priority for employers to submit their W-2s both correctly and on time.

All employers MUST file their W-2s by January 31st of each year (unless the date falls on a weekend or holiday, then the deadline is the following business day). Employers may file their W-2s electronically or by mail to the Social Security Administration (SSA) before then.

W-2s are often something that a payroll service company can provide assistance with, freeing up a lot more time around year-end for businesses.

ACA Notice of Coverage Options and Other New Hire Notices

Some new hire notices must also be provided by employers. This can be in the form of a document or outlined on a poster visible within the workplace.

As federally required by all employers covered by the FLSA, employers must provide new hires with a Notice of Coverage Options as determined by the Affordable Care Act (ACA). Copies of these notices can be found on the U.S. Department of Labor website. There are copies for employers who offer a health plan to at least some of their employees and copies for employers who do not offer a health plan.

Employers must also check their state and local laws to see if there are any additional notices unique to their area.

New Hire Reporting

As with all new hires, employers must report each new hire to the state in which the employer operates. The new hire information is then submitted to the National Directory of New Hires and is overseen by the Office of Child Support Services (OCSS).

Employers will need to gather key employee information when reporting a new hire, including:

• Employee’s name
  
• Employee’s address
  
• Social Security number (SSN)
  
• Hire date
  
• Employer’s name
  
• Employer’s address
  
• Federal Employer Identification Number (FEIN)
  

Employers must be aware of any additional new hire reporting requirements as outlined by their state. A comprehensive guide can be found on the OCSS website.

New hire reporting can be submitted electronically, through secured or first class mail, fax, etc. Each state has its own online portal for submitting new hire information.

Multistate Employers

If an employer has employees working in multiple states, employers have a few options as to which state to report them to. The first option would be to simply report each employee to the state they perform their duties. Another option would be to report all employees to one state selected by the employer.

Choosing the latter option will require employers to register with the Department of Health & Human Services (HHS) and determine the state new hires will be reported.

Employee Handbook Review

After the forms have been completed and collected, consider adding time for the employee to read and review your employee handbook.

An employee handbook is a resourceful tool for new hires to understand company policies, history, and key insights for the job position. Distributing employee handbooks can help new hires maintain compliance within the company starting from day one.

Generally, employee handbooks require new hires to sign off on the policies and best practices enforced by the company. This emulates a contract for maintaining proper conduct for an employee’s position.

Unlike many required forms for employment, employee handbooks are not required by law. Utilizing an employee handbook for onboarding new hires is at the employer’s discretion, however, handbooks are commonly used for satisfying certain notice requirements.

Fit Compliance Training into Their Schedule

The last key task to add to your employee onboarding checklist is to enlist new hires into compliance training programs. These programs will further strengthen company policy enforcement and overall workplace culture. Some, such as harassment and abuse prevention, may even be required.

Generally, businesses should consider conducting training courses based on the following topics:

• The Business’ code of conduct and code of ethics
  
• OSHA Health and Saftey
  
• Cybersecurity awareness
  
• Workplace violence
  
• Harassment and abuse prevention
  

Compliance training may not be a one-size-fits-all approach; Some businesses may even require their own unique compliance training course, depending on the role’s duties, the company's policies, and industry.

Get Help Managing Employee Onboarding

Maintaining compliance when onboarding new employees can be complicated. Employers and hiring managers need to ensure that the proper forms and documentation are completed, new hires are reported, and other important onboarding procedures are followed. 

Utilizing onboarding software that delivers compliance management speeds up the onboarding process while keeping compliant with all regulations and your company policies. Manage and organize the distribution of pre-employment documentation, set tasks for training objectives, and allow new hires to access their employee handbook all on one, seamless solution.

On the other hand, many HR services companies can help when it comes to compliance and tasks such as new hire reporting or required training. 

To learn more about how HRCG helps businesses onboard employees efficiently while adhering to regulations, contact us today.