The Employer's Timeline for Completing New Hire Paperwork

Hiring a new employee is an exciting milestone for any business. But before that person settles into their new role, you’ve got some paperwork to handle.

Employee onboarding paperwork includes a mix of federal forms, state documents, timekeeping setup, and payroll details. Each comes with its own deadline. Missing even one could mean fines, back taxes, or frustrated employees who don’t get paid on time. Not a good look. To help you stay compliant and stress-free, here’s a detailed timeline breaking down what paperwork needs to be completed, by when, and why it matters.

Day 1: First Day of Employment

The clock starts ticking the moment your new hire walks through the door (or logs in remotely).

Form I-9: Employment Eligibility Verification

Employers must complete Form I-9 within three business days from the employee's start date, but ideally, have this done on the very first day. The employee completes Section 1 immediately, while you, the employer, complete Section 2 after verifying documentation (passport, driver's license, social security card, etc.).

• Employee deadline: Section 1 must be filled out by the end of Day 1
• Employer deadline: Section 2 must be completed by the employer within 3 business days, including physical verification of ID.
• What it is: Confirms the employee is legally allowed to work in the U.S.
• Why it matters: Penalties for I-9 errors can range from hundreds to thousands of dollars per employee.

Form W-4: Employee’s Withholding Certificate

Employees must complete IRS Form W-4 on or before the first day of employment. This form determines federal income tax withholding based on marital status, dependents, and other financial details. Accurate completion ensures proper tax withholding from the first paycheck, helping employees avoid surprises during tax season.

• Deadline: Must be completed on or before Day 1 of employment.
• What it is: Let's you know how much federal income tax to withhold.
• Why it matters: Without it, you may withhold at the highest rate, which could lead to employee frustration and overpayment issues.

State Tax Withholding Forms

Depending on your location, state and local withholding forms might be required. Like the W-4, these forms determine state and local income tax withholding and should be filled out alongside federal forms.

• Deadline: Typically on Day 1 or soon after. Requirements vary by state, so check with your state’s department of revenue or labor.

Days 1–3: I-9 Compliance & System Setup

You’ve got three business days from the start date to get some key tasks finished:

Finish the I-9 (Section 2)

Physically inspect identity and work authorization documents (e.g., passport, driver’s license, Social Security card).

Complete Section 2 and retain the form for three years after the hire date or one year after termination, whichever is later.

E-Verify (if applicable)

If your company uses E-Verify, input the I-9 info within three business days of the employee’s start date.

Some states require employers to use E-Verify, so be aware of your local laws.

First Week: Pay Prep & Compliance

During the employee’s initial week, other key documents and details need attention. It's essential to establish clear expectations early.

Set Up Timesheets or Time Clocks

If your new hire is hourly, now’s the time to make sure time tracking is up and running. Whether you use digital timesheets, mobile clock-in apps, or an old-school punch clock, the key is making sure employees know how and when to track their hours from day one. For salaried employees, it’s still important to document paid time off, sick days, and holidays using your preferred system.

Direct Deposit Setup

This is also a good time to collect optional but important paperwork, like direct deposit information. Most employees expect to be paid via direct deposit, so getting their banking details early avoids delays or awkward “your check is in the mail” moments.

Emergency Contact & Employee Handbook Acknowledgment

While not required by law, most employers ask new hires to complete an emergency contact form and sign the acknowledgment of the employee handbook. This step keeps your workplace policies clear and documented from day one.

Before First Payroll Run: Double-Check the Details

Before you process that first paycheck, it’s critical to make sure every piece of employee data is correctly entered into your payroll system. Start by reviewing how the employee is classified. Are they a W-2 employee or a 1099 contractor? Are they exempt from overtime or not? Misclassifying an employee could result in back taxes, penalties, or wage disputes down the road.

You’ll also want to ensure that their pay rate, start date, tax withholdings, and deductions (like for benefits or garnishments) are correct and complete. A simple mistake (like a missing digit in a direct deposit account) can delay someone’s paycheck and erode trust with you as their new employer. Also, check your state’s payday laws to ensure you’re issuing pay on time. Some states require payment within a certain number of days after work begins, even if it’s outside your regular payroll schedule. 

Within 28 Days of Hire

Once the initial onboarding requirements are handled, there’s one more form to consider, especially if your business is eligible for hiring incentives.

Form 8850 (Pre-Screening Notice for WOTC)

• Deadline: Must be submitted within 28 calendar days of the employee’s start date.

• What it is: A form that employers must submit to the IRS to qualify for the Work Opportunity Tax Credit.

• Who qualifies? Veterans, long-term unemployed, food stamp recipients, and other target groups.

Benefits Enrollment Documentation

If your organization offers employee benefits such as health insurance, retirement plans, or other perks, communicate deadlines clearly and gather necessary enrollment documentation. Usually, enrollment must be completed within 30 days from the hire date. Completing this paperwork promptly helps new hires access their benefits without interruption.

How Long Do Employers Need To Keep The Paperwork?

Employers must keep employee onboarding and payroll records for specific timeframes based on federal and state regulations. Here's a clear breakdown to help you stay compliant:

Simplify Your Employee Onboarding with Horizon Payroll

Navigating the onboarding paperwork timeline can seem daunting, but with proper planning and organization, it doesn't have to be. At Horizon Payroll, we specialize in streamlining payroll and HR processes, allowing you to focus on growing your team and your business.

Need help ensuring compliance or managing payroll complexity? Contact Horizon Payroll today!

This content does not constitute legal advice and does not address federal, state or local law.