Welcome Back ! It’s great you are here.
You chose your new hire, you offered him/her the job, and had all the paperwork filled out. If you follow my posts you might be a little clearer than before on what paperwork you need. Now what to do with all that paperwork. You should have a filing system already set up especially if this is not your first New Hire. With any luck you also already have a payroll company that you are working with. Payroll companies although some of the National companies might be expensive you can find a great company to help you process payroll locally. Priority One Payroll out of Ballston Spa, NY is my favorite. They are reasonable with their rates, very rarely do I have any issues with them in regards to mistakes, when we do have mistakes they are corrected immediately, and their customer service is beyond any payroll company I have ever had the pleasure to work with. You can visit their website at http://www.priorityonepayroll.com
All new hires have to be reported whether by the employer or the payroll company. You are required to report all new hires, or rehires within 20 days. For more information on reporting you can visit http://www.tax.ny.gov/bus/wt/newhire.htm All the info you need is there. This pertains to NY State regulations only so if you live in another state you can visit your State Department of Labor website for more information.
Now you have to file this paperwork, you must take care that personnel files are not available to anyone in and out of the office. All Personnel files, payroll files, or any files that have personal information on them, or any files that pertain to any employee must be filed in a locked cabinet. This cabinet can be either a key lock or a combo lock. The key and combination should only be known to the HR person, the Manager of the employee, or management. Giving access to anyone in the office, or leaving this paperwork where it can be accessed by anyone is an offense that you can be fined for in the event of an audit. You can buy a combo lock cabinet that sits on a table for less than $100 at your local office supply store. You can put all payroll files, as well as new hire paperwork, medical information, time off, any paperwork that pertains to your employees that holds private and personal information must be kept in this locked cabinet. This includes all Payroll reports, and Quarterly reports.
You will setup an I-9 Folder, where you will put every employees I-9. This way in the event of an audit you can just hand over the I-9 folder without giving away access to any other information. Please make sure you have the I-9 completed correctly. Dates, signatures in the right places, all information filled in. If you get audited, and these documents are not filled out the way they are supposed to be or you have information on the wrong line this is also something you can get fined for in the event of an audit. The remaining paperwork will go into a file for each employee. You will divide it up anyway you want whether you use separate folders or maybe an accordian folder for each employee, just make sure you label each section clearly. I usually set up any employee files that I put together with a hanging file for each employee, inside each file is 4 folders. The first one is labeled with the employees first and last name. This folder is used for memos, notes, and requests. The second folder is Medical Information, this folder has any medical information, records, and doctors notes that the employee has given me. The third folder is for Reviews, PTO or time off requests, and any disciplinary action notices. The last file is for New Hire Paperwork, this folder holds all their new hire paperwork. Then I have seperate folders within the locked cabinet for Time Cards, Payroll reports, the I-9 folder and then an I-9 folder for terminated employees. Every state has different rules for employee paperwork, and the Federal Government has its own set of rules. You can visit the State Department of Labor website for your state, and http://www.dol.gov/compliance/topics/recordkeeping.htm to view record keeping requirements in regards to employee documents.