Nothing upsets your well-oiled Payroll machine more than the influx of summer hires and their paperwork. Don’t get hot under the collar. Instead, use these tips to tame the summer hiring process.
√ Require new hires to present their Social Security cards. Use the Social Security Administration’s Social Security Number Verification Service to verify that their names and Social Security numbers match. Find information at www.ssa.gov/employer/ssnv.htm.
√ Photocopy new hires’ Social Security cards for W-2 purposes. Don’t put anyone on the payroll who doesn’t present a Social Security card.
√ Report new hires to the appropriate state agency.
√ Provide W-4s to new hires who have never worked for the company. Rehires who worked for the company this year and received early W-2s must also file new W-4s. Rehires who worked for the company this year, and who didn’t receive early W-2s need not file new W-4s.
√ Eliminate the I-9 verification process for rehires, if rehiring occurs within three years of the original verification, you’re sure they’re the same people, the original I-9s show they can work in the U.S. and you update Section 3. Heads up: Rehires who didn’t complete I-9 forms with a revision date of 02/02/09 or 08/07/09 (look at the form’s upper right corner) must file new forms and be reverified.
√ Enroll summer hires in your direct deposit or paycard program, and provide them with appropriate explanatory material.
√ Don’t enroll summer hires in your health and retirement plans. A manual override will be necessary if you have auto-enrollment cafeteria and 401(k) plans.
√ Students probably aren’t exempt from federal income tax withholding. To find out, provide them with IRS Pub. 3136, which is available at www.irs.gov. However, they may be exempt from state withholding, so have state W-4 forms for them to complete.