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New Hire Paperwork and Compliance for North Dakota

A guide for business owners and HR on new hire onboarding paperwork in North Dakota, along with new hire reporting requirements and best practices.

Anna Coucke

by Anna Coucke - June 3rd, 2024

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As a small business owner or HR professional in North Dakota, welcoming a new team member is an exciting time. But amidst the rush of onboarding, you can't forget the essential task of completing new hire paperwork. This ensures you comply with state and federal regulations and sets your employee up for a smooth start.

This article provides a comprehensive guide to navigating new hire paperwork in North Dakota. We'll delve into the mandatory documents like the I-9 form and W-4, explain state tax withholding, and explore the new hire reporting process. Additionally, we'll offer valuable best practices to streamline the process and ensure a positive onboarding experience.

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Federal I-9 Employment Eligibility Form

Every new hire in the United States, regardless of immigration status, needs to complete two federal forms. The first is Form I-9, which verifies your employee's identity and eligibility to work in the U.S. You, the employer, are responsible for completing Section 1 (employee information) and Section 2 (verification documents).

The employee has three business days to provide acceptable documentation from List A or a combination of documents from List B and List C as outlined in the form's instructions. The U.S. Citizenship and Immigration Services (USCIS) website provides a wealth of information on the I-9 form, including a downloadable copy and a helpful employer handbook.

Federal Form W-4, Employee's Withholding Allowance Certificate

The second required federal document is the W-4, which determines the amount of federal income tax to be withheld from your employee's paycheck. The employee completes the W-4, indicating their filing status and claiming any allowances they're entitled to. The IRS website offers a fillable W-4 form and instructions.

North Dakota State Tax Withholding

North Dakota has its own income tax, which employers are responsible for withholding from their employees' wages.

Here's a breakdown of the key steps for North Dakota tax withholding:

  1. Determine Employee Residency: Knowing your employee's residency status is crucial. North Dakota residents have state income tax withheld, while non-residents generally do not.

  2. Obtain Withholding Certificate: North Dakota uses its own withholding certificate, the ND W-4, which your employee will complete. This form gathers information to calculate the correct amount of state income tax to withhold. You can find a downloadable ND W-4 on the Department of Revenue's website.

  3. Withhold and Remit Taxes: Based on the employee's W-4 and ND W-4, withhold the appropriate amount of state income tax from each paycheck. You'll need to register as a withholding agent with the North Dakota Department of Revenue and submit these withheld taxes electronically or by mail according to their schedule.

New Hire Reporting in North Dakota

North Dakota law mandates that all employers report new hires to the State Directory of New Hires within 20 days of their first day of work. This includes employees who are new to your company or those who haven't worked for you in at least 60 consecutive days.

Here are the different ways to report new hires in North Dakota:

  • Online Web File Transfer: This is the preferred method for employers with a high volume of new hires. The Child Support Enforcement Division website provides instructions and access to the online portal.

  • Printed List: Employers with 24 or fewer employees also have the option to use the paper "New Hire Reporting Information" form. This form can be downloaded from the Department of Human Services website and mailed or faxed to the Child Support Enforcement Division.

Best Practices for New Hire Paperwork

While completing the necessary forms is essential, here are some additional tips to ensure a smooth and efficient new hire paperwork process:

  • Be Prepared from the Start: Gather all the necessary forms beforehand, including the federal I-9 and W-4, the North Dakota ND W-4 for state tax withholding, and the North Dakota New Hire Reporting form. Having these documents readily available on your new hire's first day reduces stress and streamlines the process.

  • Open Communication is Key: Briefly explain the purpose of each form and answer any questions your new hire may have regarding the paperwork. Transparency fosters trust and helps your new employee feel comfortable during onboarding in their new role.

  • Security Matters: Employee information is confidential. Implement procedures to safeguard all employee data collected during the onboarding process. Restrict access to sensitive data and ensure proper disposal of outdated paperwork in accordance with recordkeeping requirements.

  • Stay Informed: Federal and state regulations can change. Regularly check for updates on the I-9, W-4, ND W-4, and New Hire Reporting requirements to ensure compliance. Utilize resources from the USCIS, IRS, and North Dakota Department of Revenue websites for the latest information.

By following these best practices, you can streamline the new hire paperwork process in North Dakota, making your new team member's onboarding experience a positive one that sets them up for success while also ensuring you meet all legal requirements.

Additional New Hire Paperwork Considerations

Beyond the essential forms and reporting, there might be additional documents specific to your industry or company policies that new hires need to complete. These could include:

  • Non-Disclosure Agreement (NDA): If your company deals with confidential information, an NDA might be required.

  • Benefits Enrollment Forms: If you offer health insurance, retirement plans, or other benefits, new hires will need to choose their coverage options.

  • Direct Deposit Authorization: This form allows for electronic payroll deposits into the employee's bank account.

  • Company Policy Acknowledgements: New hires might need to acknowledge receipt and understanding of company policies such as harassment, equal opportunity, and vacation time accrual.

How GoCo Supports New Hire Onboarding in North Dakota

For businesses looking to streamline their onboarding process, a modern, all-in-one HR software solution empowers employers to be confident in their hiring and onboarding compliance by keeping everything organized and automating mundane tasks.

GoCo simplifies HR for companies in North Dakota with updates to reflect current and evolving regulations for paperwork, reporting, and other legal requirements. Plus, our user-friendly onboarding software simplifies the entire experience for employers and new hires.

Want to see it for yourself? Take a free tour of GoCo today and see how we can transform your onboarding and other HR processes — including performance management, time tracking, and much more!

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