{"id":17336,"date":"2020-06-26T01:24:31","date_gmt":"2020-06-26T01:24:31","guid":{"rendered":"https:\/\/www.scionstaffing.com\/?p=17336"},"modified":"2020-09-24T23:43:07","modified_gmt":"2020-09-24T23:43:07","slug":"how-to-hire-employees-in-the-united-states-the-ultimate-guide","status":"publish","type":"post","link":"https:\/\/scionstaffing.com\/how-to-hire-employees-in-the-united-states-the-ultimate-guide\/","title":{"rendered":"How to Hire Employees in the United States: The Ultimate Guide"},"content":{"rendered":"<p>Since the beginning of the pandemic,\u00a0<a href=\"https:\/\/fortune.com\/2020\/05\/28\/us-unemployment-rate-numbers-claims-this-week-total-job-losses-may-28-2020-benefits-claims-job-losses\/\" target=\"_blank\" rel=\"noopener noreferrer\">over 40 million Americans<\/a>\u00a0have filed unemployment claims.<\/p>\n<p>What does this mean for you, a savvy business owner? As the country reopens and we take steps to rebuild the economy, more people than ever will be\u00a0<a href=\"http:\/\/scionstaffing.com\/finding-a-job-during-a-pandemic\/\" target=\"_blank\" rel=\"noopener noreferrer\">looking for a new job<\/a>.<\/p>\n<p>Before you jump in and begin to hire employees, however, there&#8217;s a long checklist of items to consider.<\/p>\n<p>How much do you know about determining worker eligibility in the US? Do you know which tax forms for new employees you&#8217;ll need? What about onboarding foreign workers? And how will you find time to handle employee payroll, taxes, and other administrative tasks?<\/p>\n<p>In this post, we&#8217;ll answer those important questions and more.<\/p>\n<p>(Please note: The information in this article is designed to help you with employee onboarding, but it&#8217;s not a substitute for legal advice. If you have any questions, it&#8217;s best to consult with a lawyer or your state&#8217;s\u00a0<a href=\"https:\/\/www.dol.gov\/agencies\/whd\/state\/contacts\" target=\"_blank\" rel=\"noopener noreferrer\">Department of Labor<\/a>\u00a0to ensure you&#8217;re in full compliance.)<\/p>\n<p>Are you ready to hire employees and grow your business? Read on to learn all about the hiring process and how to hire workers in the US.<\/p>\n<h2>Hiring Employees: Basic Requirements<\/h2>\n<p>So, your dream candidate walked through the door and nailed their interview. Now what?<\/p>\n<p>Let&#8217;s start with the information you need to collect during the hiring process.<\/p>\n<h3>Eligibility to Work in the US<\/h3>\n<p>Every employer must complete an\u00a0<a href=\"https:\/\/www.uscis.gov\/i-9\" target=\"_blank\" rel=\"noopener noreferrer\">I-9 Employment Eligibility Verification<\/a>\u00a0form for every new hire. This is a requirement for both citizens and non-citizens.<\/p>\n<p>The employee must provide documentation that they&#8217;re legally able to work in the US. If they&#8217;re not a US citizen, they&#8217;ll need to provide one of the following:<\/p>\n<ul>\n<li>Alien registration number (USCIS number)<\/li>\n<li>Form I-94 admission number<\/li>\n<li>Foreign passport number<\/li>\n<\/ul>\n<p>It&#8217;s your responsibility to ensure their documents are genuine and acceptable as proof of eligibility. You&#8217;ll need to retain a copy of the completed forms for your employee records.<\/p>\n<h3>Employee&#8217;s Social Security Number (SSN)<\/h3>\n<p>Each employee (residents and non-residents) must provide their social security number. Ask to see their social security card and make a photocopy of it for your records.<\/p>\n<p>If you have any concerns about authenticity, you can use the\u00a0<a href=\"https:\/\/www.ssa.gov\/employer\/ssnv.htm\" target=\"_blank\" rel=\"noopener noreferrer\">SSA&#8217;s number verification service<\/a>\u00a0to ensure the number is valid. Any applicant who can&#8217;t present a social security card will need to apply for one before you can hire them.<\/p>\n<p>Bonus tip: Beware of unknowingly accepting an\u00a0<a href=\"https:\/\/www.irs.gov\/individuals\/individual-taxpayer-identification-number\" target=\"_blank\" rel=\"noopener noreferrer\">ITIN number<\/a>\u00a0in place of a social security number. These are given to non-residents who need the identification for tax purposes but are not eligible to work in the US. All ITINs are 9-digit numbers beginning with the number &#8220;9.&#8221;<\/p>\n<h3>Employee&#8217;s Withholding<\/h3>\n<p>Another form you need to collect when you hire employees is the\u00a0<a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/fw4.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Form W-4<\/a>\u00a0Employee&#8217;s Withholding Certificate. You&#8217;ll use this information to determine how much income tax to withhold from each paycheck.<\/p>\n<p>Any exemptions the employee wants to claim must be based on their filing status (i.e., single, married, number of dependent children). The W-4 remains valid until you receive a new one from your employee.<\/p>\n<p>Important note: If the employee claims any exemptions from withholding income tax, they&#8217;ll need to submit an updated W-4 each year.<\/p>\n<h2>Hiring Process Checklist<\/h2>\n<p>Before you hire employees, you need to make sure your business is in full compliance with federal, state, and local laws.<\/p>\n<p>If you haven&#8217;t already, you&#8217;ll need to register your business and obtain an Employer Identification Number (EIN). If you&#8217;ve set up your business as a partnership or corporation, you should already have one.<\/p>\n<p>Used for tax purposes, your EIN basically acts as a social security number for your business. Different states have different requirements and\u00a0<a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/apply-for-an-employer-identification-number-ein-online\" target=\"_blank\" rel=\"noopener noreferrer\">ways to apply<\/a>, so find out what you need to do in your locale. This is also the time to determine how you&#8217;ll handle payroll and employee benefits and how to meet worker&#8217;s compensation requirements.<\/p>\n<p>Next comes the paperwork you&#8217;ll need before you can hire employees. These include the tax forms listed above (W-2 and W-4), as well as a state withholding form if applicable to your state. You&#8217;ll also need to decide if you want to hire workers as employees or independent contractors.<\/p>\n<p>After you&#8217;ve completed interviews and narrowed down candidates, they need to\u00a0<a href=\"https:\/\/www.uscis.gov\/i-9-central\/acceptable-documents\/list-documents\/form-i-9-acceptable-documents\" target=\"_blank\" rel=\"noopener noreferrer\">present documents<\/a>\u00a0proving they&#8217;re legally able to accept work in the US. If you (even unknowingly) hire employees who aren&#8217;t eligible to accept a job in the US, you could face fines or criminal charges.<\/p>\n<p>To ensure the safety of your staff, your customers, and your business, you may also want to order a background check. Experts estimate that\u00a0<a href=\"https:\/\/www.inc.com\/jt-odonnell\/staggering-85-of-job-applicants-lying-on-resumes-.html\" target=\"_blank\" rel=\"noopener noreferrer\">85% of applicants<\/a>\u00a0lie on their resumes, so you want to make sure your applicant is who they say they are.<\/p>\n<p>Once the new employee is officially hired, you&#8217;ll need to report their information to your state&#8217;s labor agency. You&#8217;ll also report your payroll taxes on a quarterly or annual basis.<\/p>\n<p>Here&#8217;s a quick checklist of these points you can refer back to anytime:<\/p>\n<ul>\n<li>Get your EIN number<\/li>\n<li>Consider options for payroll and employee benefits<\/li>\n<li>Get\u00a0<a href=\"https:\/\/www.entrepreneur.com\/article\/79594\" target=\"_blank\" rel=\"noopener noreferrer\">worker&#8217;s compensation<\/a>\u00a0insurance<\/li>\n<li>Gather tax forms for new employees<\/li>\n<li>Verify employee&#8217;s eligibility to work in the US<\/li>\n<li>Run a background check (optional)<\/li>\n<li>Submit completed new hire forms to government agencies<\/li>\n<\/ul>\n<p>If this feels like too much to handle on your own, keep in mind you don&#8217;t have to go through the hiring process alone. Professional\u00a0<a href=\"http:\/\/scionstaffing.com\/direct-hire-contingency-search-services\/\" target=\"_blank\" rel=\"noopener noreferrer\">direct hire staffing services<\/a>\u00a0can make your life easier by screening and hiring the best candidates for you.<\/p>\n<h2>Payroll, Taxes &amp; Social Security for J-1 Visa Holders<\/h2>\n<p>Until now we&#8217;ve focused mainly on hiring US citizens, which is a fairly straightforward process. What if you have the opportunity to hire a foreign worker, such as an exchange student in the US on a\u00a0<a href=\"https:\/\/j1visa.state.gov\/\" target=\"_blank\" rel=\"noopener noreferrer\">J-1 visa<\/a>?<\/p>\n<p>Even though they&#8217;re not citizens, they still need to obtain a social security number and pay federal, state, and income taxes. (They are exempt from paying\u00a0Social Security, Medicare, and federal unemployment taxes.)<\/p>\n<p>Many aspects of the hiring process are the same, but there are a few differences to remember when you hire employees who aren&#8217;t US citizens.<\/p>\n<p>As long as the student can provide proof that they&#8217;ve applied for a social security number, you may hire them. As soon as they receive their social security card, you&#8217;ll need to update your employee records\u2014but more on this subject later.<\/p>\n<p>If the student is late in filing for their social security number, they should include the\u00a0form SS-7028 with their application. This authorizes the SSA to send their number directly to you, the employer, as soon as it&#8217;s issued.<\/p>\n<p>The student may need guidance on how to fill out their W-4. Let them know:<\/p>\n<ul>\n<li>Not to use the Personal Allowances Worksheet<\/li>\n<li>Select &#8220;single&#8221; for marital status in Line 3 (even if they&#8217;re married)<\/li>\n<li>Claim &#8220;1&#8221; withholding allowance on Line 5<\/li>\n<li>Add &#8220;Nonresident Alien&#8221; or &#8220;NRA&#8221; above Line 6<\/li>\n<li>Not to claim any exemptions on Line 7<\/li>\n<\/ul>\n<p>It will be your responsibility to send the appropriate W-2 statement to the student at the end of the tax year, even if they&#8217;ve already returned to their home country. If their employment spans two tax years, you&#8217;ll need to send a W-2 for each year.<\/p>\n<p>Tax withholding for foreign students works differently than usual too.\u00a0You&#8217;ll need to add a certain amount to their wages before\u00a0you calculate the correct withholding amount (federal taxes only). To determine these amounts, check\u00a0<a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-publication-15\" target=\"_blank\" rel=\"noopener noreferrer\">Publication 15<\/a>\u00a0for the latest requirements.<\/p>\n<h2>Employer Responsibilities When Hiring Foreign Workers<\/h2>\n<p>Would it surprise you to learn that 17% of the American workforce (over 27 million people)\u00a0are foreign-born workers? As long as you understand the legal requirements, there&#8217;s no reason you can&#8217;t bring a foreign worker onto your team.<\/p>\n<p>A social security number is often the biggest hurdle to those seeking a job in the US. And because the SSA tries to ensure that only those who truly should receive a number get one, delays are common.<\/p>\n<p>It may take weeks or even months from the time your employee applies for a number until they receive it. This is because the SSA has to verify the applicant&#8217;s documents with the Department of Homeland Security<\/p>\n<p>The good news is that\u2014as long as the application is submitted and active\u2014the individual is allowed to work for you.<\/p>\n<p>So then, what are\u00a0your\u00a0responsibilities as an employer hiring a foreign worker?\u00a0Once you have proof they&#8217;ve applied for a social security number, collect the following information for your records:<\/p>\n<ul>\n<li>Employee&#8217;s full name<\/li>\n<li>Date of birth<\/li>\n<li>Place of birth<\/li>\n<li>Current address<\/li>\n<li>Parent&#8217;s full names (including mother&#8217;s maiden name)<\/li>\n<li>Gender<\/li>\n<li>Date of social security number application<\/li>\n<\/ul>\n<p>With this information, you can legally hire the employee, keeping in mind you&#8217;ll need to update your records once the number comes in.<\/p>\n<p>What happens if the social security number hasn&#8217;t arrived by the time your tax forms (W-2s) are due? If you&#8217;re filing on paper, simply write &#8220;applied for&#8221; in Box A on the employee&#8217;s W-2. Electronic filers should enter all zeroes (000-00-0000) in the field for the social security number.<\/p>\n<p>Here&#8217;s another scenario: What if your foreign worker receives their social security card after you&#8217;ve filed your wage report? You&#8217;ll need to file a\u00a0<a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-w-2-c\" target=\"_blank\" rel=\"noopener noreferrer\">W-2c Corrected Wage and Tax Statements<\/a>\u00a0form to include the new number.<\/p>\n<h2>Can You Hire Employees Without a Social Security Number?<\/h2>\n<p>We&#8217;re into the home stretch now, so let&#8217;s address one more common question about hiring workers in the US.<\/p>\n<p>Let&#8217;s say you find an outstanding candidate who doesn&#8217;t have a social security card. Or maybe a foreign exchange student applies for a seasonal or temporary position with your company.\u00a0Can you hire them if they don&#8217;t have a social security number?<\/p>\n<p>The short answer is no\u2014but it is possible to turn that &#8220;no&#8221; into a &#8220;yes.&#8221; If you want to hire the individual, there are steps you can take to legalize their work status.<\/p>\n<p>Start by asking them to submit an\u00a0<a href=\"https:\/\/www.ssa.gov\/forms\/ss-5.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">application for a social security card<\/a>. Once they&#8217;ve done so, they can obtain a letter from the Social Security Administration stating that their application is in process.<\/p>\n<p>When you have all this necessary information, the employee may legally begin working for you.\u00a0Once they get their social security card, you&#8217;ll need to update your records with the new information. Have the employee fill out an I-9 form and any other new hire paperwork.<\/p>\n<p>What happens if the application for a social security number is denied? In that case, the individual cannot legally work in the US\u2014or for your company.<\/p>\n<h2>Scion Staffing Payroll Services: We&#8217;re Here to Help<\/h2>\n<p>As you can see, there are many factors to consider whenever you hire employees.<\/p>\n<p>Determining the worker&#8217;s eligibility is only the beginning. As an employer, you have a long checklist of items to tick off during the onboarding process. There are also special considerations to make for workers who are foreign-born or those who don&#8217;t have a social security number.<\/p>\n<p>As your business grows, you&#8217;ll need to consider how to handle payroll, taxes, and other back-office tasks. If you feel overwhelmed by all the duties you have to juggle, don&#8217;t worry\u2014help is available.<\/p>\n<p>Our\u00a0<a href=\"http:\/\/scionstaffing.com\/employee-of-record-payroll-services\/\" target=\"_blank\" rel=\"noopener noreferrer\">payroll and employee of record staffing services<\/a>\u00a0are designed to streamline the way you run your company. From onboarding and handling payroll to employee benefits and worker&#8217;s compensation, we&#8217;ll manage those time-consuming tasks so you&#8217;re free to focus on your business.<\/p>\n<p data-cc-highlighted=\"true\">Does this sound like the answer you&#8217;ve been searching for? Give us a call at\u00a0<span class=\"__gu\"><span class=\"bul-cloudcall-click-to-call-rich js-cloudcall-number\" data-number=\"18884878850\" data-tooltip-number=\"+18884878850\"><img decoding=\"async\" class=\"bul-cloudcall-click-to-call-image\" src=\"chrome-extension:\/\/jfeiiafdlajdfijkagdncomkjjpadogg\/img\/logo.svg\" \/>\u00a0888-487-8850<\/span>\u00a0<\/span>or use\u00a0<a href=\"http:\/\/scionstaffing.com\/request-staff\/\" target=\"_blank\" rel=\"noopener noreferrer\">our online form<\/a>\u00a0to request more information.<\/p>\n<p>We look forward to hearing from you.<\/p>\n<p>&nbsp;<\/p>\n<p><em>Please note: The information in this article is not legal advice. Please consult with a lawyer and or your state&#8217;s <a href=\"https:\/\/www.dol.gov\/agencies\/whd\/state\/contacts\" target=\"_blank\" rel=\"noopener noreferrer\">Department of Labor<\/a>\u00a0to ensure you&#8217;re in full compliance.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Since the beginning of the pandemic,\u00a0over 40 million Americans\u00a0have filed unemployment claims. What does this mean for you, a savvy business owner? As the country reopens and we take steps to rebuild the economy, more people than ever will be\u00a0looking for a new job. Before you jump in and begin to hire employees, however, there&#8217;s a long checklist of items to consider. How much do you know about determining worker eligibility in the US? Do you know which tax forms for new employees you&#8217;ll need? What about onboarding foreign workers? And how will you find time to handle employee payroll, taxes, and other administrative tasks? In this post, we&#8217;ll answer those important questions and more. (Please note: The information&#8230;<\/p>\n","protected":false},"author":7,"featured_media":17337,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6529],"tags":[6730,6731,6734,6729,6732,6733],"series":[],"yst_prominent_words":[6722,6721,595,124,6715,6724,6716,6725,6723,6727,6718,6717,6713,6719,6712,6714,6711,6829,6726,6720],"class_list":["post-17336","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employer-tips","tag-employer-responsibilities","tag-hire-employees","tag-hiring-process-checklist","tag-how-to-hire-employees","tag-payroll","tag-taxes-social-security"],"_links":{"self":[{"href":"https:\/\/scionstaffing.com\/wp-json\/wp\/v2\/posts\/17336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scionstaffing.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scionstaffing.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scionstaffing.com\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/scionstaffing.com\/wp-json\/wp\/v2\/comments?post=17336"}],"version-history":[{"count":4,"href":"https:\/\/scionstaffing.com\/wp-json\/wp\/v2\/posts\/17336\/revisions"}],"predecessor-version":[{"id":17617,"href":"https:\/\/scionstaffing.com\/wp-json\/wp\/v2\/posts\/17336\/revisions\/17617"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scionstaffing.com\/wp-json\/wp\/v2\/media\/17337"}],"wp:attachment":[{"href":"https:\/\/scionstaffing.com\/wp-json\/wp\/v2\/media?parent=17336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scionstaffing.com\/wp-json\/wp\/v2\/categories?post=17336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scionstaffing.com\/wp-json\/wp\/v2\/tags?post=17336"},{"taxonomy":"series","embeddable":true,"href":"https:\/\/scionstaffing.com\/wp-json\/wp\/v2\/series?post=17336"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/scionstaffing.com\/wp-json\/wp\/v2\/yst_prominent_words?post=17336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}