The experienced professionals at Edge Financial are your resource for the latest and greatest news, tips, and information for all things tax.
Unless you’re going into business alone, you’ll eventually have to do hiring paperwork. Today’s lesson should be pretty painless, and perhaps obvious to most of you who have been with us for awhile. If you haven’t already, go ahead and review lesson six before this one. It might also help to check out our lesson on the W-4 form. In these lessons, I’ve mention some important considerations and pitfalls that you should review before submitting the paperwork to hire.
First thing is the W-2. Before you start working someone, they’ve got to have the legal right to do so in the US. The W-2 confirms this, using the employee’s Social Security Number and photo ID or a passport as proof. This should sound very familiar. If not, please review our W-2 form here.
Secondly, the W-4. It should be filled out by your employee and sent in, going into effect with his or her first paycheck. If an employee states that they’re exempt from withholding, it must be filled once a year.
And that’s it. Class dismissed! Consider this a half-day!