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Hiring Workers and Maintaining Compliance

What forms do new employees need to fill out?

In addition to any employment forms your company keeps (health insurance, HR policies, agreements, etc) employees in the state of Colorado need to fill out forms W-4 and I-9. It's a good practice to make a photo copy of the identification documents provided by your employee with the I-9.  Be sure to report your new hire to the Colorado State Directory of New Hires within 20 days.

IRS Form W-4 (Required for New Hires) (PDF)

Citizenship Form I-9 (Required for New Hires) (PDF)

Colorado Affirmation of Legal Work Status (Required for Colorado new Hires) (PDF)

Direct Deposit Authorization Form (PDF)

 

What do I (the employer) do next? 

  1. Make a photo copy of the identification cards provided by your employee.
  2. Review the forms for completeness and accuracy.  Compare the information provided on the forms by the employee against the identification provided.
  3. Complete the lower section of the Citizenship Form I-9 with the employees' identification cards, hire date, your company information, and sign the form that you have verified the information.
  4. Within 20 days of hire, complete the Colorado New Hire Reporting Form (Required for New Hires) (PDF) and fax to (303) 297-2595.  The information can also be provided online at the Colorado State Directory of New Hires.
  5. Keep a record of the employee's information by maintaining a New Employee Fact Sheet (PDF).  Update this form or create a new one periodically to record changes in salary rates, payroll deductions, and termination dates.
  6. Make individual files for each employee and store these records in a safe, secure location.  Do not keep any health-related information in these employment folders.  This information should be stored in a separate secure location to comply with HIPPA Privacy Laws.  Do not allow employees to keep their file; these records belong to you the employer.  If the employee would like their file, make them copies of the records you maintain and keep the originals.

 

What forms do non-employees (subcontractors) need to fill out?

Subcontractors that are not employees also need to receive an annual form that similar to an employees W-2 (IRS Form 1099).  They need to provide their taxpayer identification number (which is generally their social security number).  The IRS provides form W-9 to request their pertinent information.  It is also a best practice to request a certificate of insurance before allowing subcontractors to perform any services on or off-site.

IRS Form W-9 (Required for Subcontractors) (PDF)

Direct Deposit Authorization Form (PDF)

 

What happens next?

  1. Request a certificate of liability and/or professional insurance coverage from the subcontractor before allowing them to perform any work for you.  Be sure they have ample coverage to cover any potential incidents that may occur.
  2. Have the subcontractor sign a subcontracting agreement.  It is a best practice to have legal council draw up an agreement, however these can also be located online.
  3. Similarly to hiring employees, keep a record of the subcontractor's information by maintaining a Subcontractor Information Sheet (PDF).
  4. Maintain individual files for each subcontractor and store the files in a safe, secure location.  Treat these files as if they were employee files and keep them confidential.

 

Please feel free to contact us with any additional questions.