Below is a list of IRS forms you need to complete for each new employee or contractor you hire.

I suggest you do not let your new employees work until all of these forms have been completed.

For contractors, do not pay them more than $600 before their forms have been completed.  I suggest you hold their contractor check until you have the paper work in hand.

For all employees and contractors I also recommend you get a photocopy of their social security card and drivers license if possible.

A well organized file cabinet and folder system to keep up with this information will save you a lot of time later.  At our company we both file the paper forms and scan and attach an electronic version of the forms to our employee and contractor records within Service Autopilot.

Employee Forms:

Form I-9 (I also recommend photocopying the employees social security card)

Form W-4

Contractor Forms:

Form W-9 - keep on file a minimum of 4 years

Form 1099-MISC – you must file before January 31st each year for every contractor paid over $600

Request EIN – if your contractor needs an EIN number

Other Forms:

Links to Your State - to locate additional forms or research tax questions

Spanish Version of I-9 – DO NOT submit this version to the IRS.  Use it only as a reference when helping Spanish speaking workers complete the English version.  This is only accepted in Puerto Rico.

Spanish Version of W-4

Spanish Version of W-9


Notes:

New Employees fill out the I-9 and W-4 and receive a W-2 at the end of the year.

New Contractors fill out the W-9 and receive a 1099 at the end of the year.  Contractors do not have to complete the I-9.

In addition to the IRS forms we have each employee sign a short employee agreement and each contractor sign a contractor agreement.

We also have a short information sheet we complete for each employee (this information is also keyed into Service Autopilot).  It asks for emergency contact information, drivers license expiration date, keeps up with uniforms assigned, pay rate, birth date, marital status, etc.

All of our hiring packets are pre-assembled.  This makes it easy to ensure all the forms are completed on time.  For example, if you hire 20 new employees / contrators each year prepare 25 packets every January.  Then, when you hire someone you simply grab one of the packets.

This simple process every January will ensure you are in compliance with the IRS at all times.

Question: Do you have any information you keep up with that I didn’t mention?  — please click on the post and comment at the bottom

I am a fan of the H2B Visa program.  For any company that needs a lot of workers and truly intends to use a 100% legal work force it is absolutely necessary.  However, based on both past and new legislation, regarding the program, I believe it is intentionally being destroyed.

If you participate in the program and are unaware… as of October 1st 2011 you must adjust the wages you pay H2B Visa workers.  You cannot wait until next year.

If your lawn care & landscape business utilizes the H2B Visa program I strongly encourage you to contact your H2B Visa lawyer to make certain you are on top of these changes and will be in compliance come October.

Also, you should seriously consider writing, calling and emailing your local Congressmen and the US Department of Labor.  We have done so.  I hope you will as well.

I suggest that you let them know that the current legislation will potentially render the H2B Visa program useless.  The program has reached the point of becoming too costly and too complicated.

Your Congressman must understand that the most recent changes to the program will increase your wages beyond what is reasonable.   This program, I believe, now forces employers to pay foreign workers more than U.S. workers.

How can that be right?  Hence, my belief the program is intentionally being slowly dismantled through legislation.

Let your Congressman know that you do not participate in the H2B Visa program because it is easy or saves you money – you participate because it is necessary in order for you to find the essential legal temporary workers you must have to operate your business.

In my opinion, available skilled labor continues to be one of the absolute biggest issues within the industry.  These legislative changes only worsen the problem.

Additional Resource: http://www.foreignlaborcert.doleta.gov/pdf/H2B_PWDNPRM-6-28-2011.pdf