by Anne Lane
Even if your business isn't quite ready for a personnel department, it is a good idea to put together a hiring package that will form the basis of each new employee's personnel record. The following are some basic items you will want to consider including in your hiring package.
Government Forms. The W-4 form is required by the Internal Revenue Service. The W-4 is used by the employer to determine how much taxes to withhold from the employee's paycheck. You do not send the W-4 to the IRS. The employee fills this form out. Keep extra W-4 forms on hand because an employee may need to complete a new one if they experience a change that will affect their taxes such as getting married, having a child, or buying a house.
The I-9 form is required by the Immigration and Naturalization Service. It verifies a new employee's authorization to work in the United States. Both the employer and the employee fill out this form. As an employer, you will need to verify the employee's identity and authorization to work in the US. You can do this by looking at the employee's driver's license and social security card or other proof of authorization. Make copies of these documents to keep in the employee's file. You do not send the I-9 form to the INS; you keep it on file.
Confidentiality and Non-Compete Agreements. Depending on the nature of your business and the position you're hiring for, you may want to have employees sign confidentiality and non-compete agreements. If the employee will have access to any trade secrets it is a good idea to have him sign these documents. You may want to use a non-compete agreement if you are worried that the employee will go to work for a competitor.
Employment Manual & Policies. If you don't already have an employment manual, you may need to create one. Use it to let your employees know what you expect of them and what they can expect of you. It should include items such as your leave policies, business hours, office procedures, etc. An employment manual doesn't have to be long and complex, but you should have a lawyer who practices employment law look at it just to make sure you don't inadvertently create an employment contract.
Benefits and Insurance. Explain any benefits, such as health insurance, that your company offers to the new hire. Let the employee know how long they need to work before they are eligible for the benefits. You can go ahead and have the employee fill out any paperwork now or you can calendar a date nearer to eligibility for filing out the necessary paperwork. Be sure to give him time to read any materials and gather information that may be needed.
Having these items assembled and ready for each new hire will save your company from having to figure out what needs to be done each time you hire a new employee. The preceding list is not exhaustive; anything you will need for new hires should go in this package.
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