Implementation New Hire Paperwork Requirements

New Hire Paperwork Requirements

Purpose

To outline the process and requirements for collecting and verifying all new hire paperwork (including federal and state tax forms, employment verification, and internal setup forms) for any new employee, particularly for new business clients onboarding with HR Butler.

Scope

This SOP applies to:

• All Implementation Specialists and HR Butler staff involved in onboarding new business clients.

• All clients responsible for submitting new hire documentation to ensure compliance and accurate payroll setup.

Objective

To ensure that all required new hire documentation is:

1. Completed accurately and in full.

2. Submitted to HR Butler prior to processing the employee’s first payroll.

3. Properly stored and verified for compliance with federal and state requirements.

Required Forms

Each new hire must have the following documents completed and submitted:

1. Federal Forms

   • W-4 Form: Employee’s Withholding Certificate for federal income tax.

   • I-9 Form: Employment Eligibility Verification form, completed within three (3) business days of hire.

2. State Forms

   • Applicable state withholding forms (if required based on the employee’s work or residence state).

3. Company-Specific Forms

   • New Hire Form: Internal HR Butler or client-specific form that captures key employee details, such as:

     • Full legal name

     • Address and contact information

     • Date of birth

     • Social Security Number

     • Start date and position

     • Pay rate and pay type (hourly/salary)

     • Department/location assignment

     • Employment Category

Procedure

Step 1: Client Notification

• During client onboarding, the Implementation Specialist must explain that all new hires must complete required paperwork prior to being added to payroll if the client doesn't utilize onboarding or add the new hires themselves.

• Provide the client with the New Hire Packet, which includes:

  • W-4 (Federal)

  • I-9

  • State tax form (if applicable)

  • New Hire form

  • Direct Deposit form

Step 2: Client Completion and Submission

• The client is responsible for ensuring all new hire documents are:

  • Completed accurately and signed.

  • Submitted to HR Butler via the secure upload link or designated email.

• For new business clients, emphasize that these forms are required to build their employee records in the system.

Step 3: HR Butler Review

• Upon receipt, the Implementation Specialist will:

  1. Review all forms for completeness and accuracy.

  2. Verify that the I-9 form includes acceptable documentation (per USCIS requirements).

  3. Confirm that the employee’s start date aligns with the payroll schedule.

  4. Enter all employee details into the system (iSolved, or other platform).

Step 4: Follow-Up and Compliance

• If any documents are incomplete or missing:

  • The Implementation Specialist will notify the client immediately with details of what’s missing.

  • The employee cannot be processed for payroll until all required documentation is received.

Step 5: Record Retention

• All new hire documents must be uploaded to the employee’s profile in isolved and retained per federal and state requirements:

  • I-9 Forms: Keep for three years after hire or one year after termination (whichever is later).

  • W-4 Forms: Keep for at least four years after the date of the last tax return filed using the information.

Special Notes for New Business Clients

• For new business clients with no prior payroll history, new hire documentation is critical for:

  • Accurate system setup and tax configuration.

New Hire Paperwork