Having the documents for new employees ready protects you from day one. When you hire employees in California, there are federal forms, state forms and notices you must give them.
This guide gives you a checklist and explains each document in plain words.
In short
- The I-9 proves the employee can work in the U.S.; section 2 is completed within 3 business days.
- The W-4 is for federal withholding and the DE 4 is for California's.
- You must give required notices, such as the one under Labor Code 2810.5.
- Report the new employee to the EDD with the DE 34 within 20 days.
- Keep I-9s separate from the employee file.
Quick checklist of documents for new employees
Print this table and use it with every person you hire. That way you won't miss any deadline.
| Document | Who fills it out | Deadline | Where it is kept |
|---|---|---|---|
| I-9, section 1 | Employee | By the first day of work | I-9 folder (kept separate) |
| I-9, section 2 | Employer | Within 3 business days | I-9 folder (kept separate) |
| W-4 | Employee | Before the first payment | Payroll file |
| DE 4 | Employee | Before the first payment | Payroll file |
| Labor Code 2810.5 notice | Employer | When you hire | Signed copy in the file |
| Workers' comp and EDD pamphlets | Employer | When you hire | Proof of delivery |
| Direct deposit authorization | Employee | Before the first payment | Payroll file |
| DE 34 (new employee report) | Employer | Within 20 days | Proof of shipment |
1. Form I-9
Form I-9 verifies the employee's identity and permission to work in the U.S. It is a federal requirement for all employees, according to USCIS.
- The employee fills out section 1 by their first day of work at the latest.
- You review their original documents and complete section 2 within 3 business days.
- Do not ask for specific documents. He chooses which ones to show from the official list.
Keep I-9s in a separate folder, not in the personnel file. That way, if there is an inspection, you only hand over that folder.
2. W-4 and DE 4
These are the two forms for tax withholding on wages. Each one has its own purpose.
- W-4: tells the employer how much federal tax to withhold. See the IRS guide.
- DE 4: tells the employer how much California tax to withhold. The EDD publishes it.
If the employee does not turn in the DE 4, California withholding is calculated with default values. Always ask for both forms before the first payment.
3. Personal and contact information
Start a basic information sheet for each employee. It helps you with payroll and in an emergency on the job.
- Full name, address and phone number.
- Emergency contact.
- Start date, job title and hourly pay.
4. Direct deposit
If the employee wants direct deposit, you need their written authorization with their bank details. In California, you generally cannot force anyone to be paid by direct deposit.
Keep the authorization in the payroll file. If the employee changes banks, ask for a new one.
5. Offer letter, handbook and required notices
Here are the papers that explain the rules of the job. Some are notices the law requires you to give.
Labor Code 2810.5 notice
This notice tells the employee their hourly pay, their payday and the name of your company. It also includes your workers' comp (workers' compensation insurance) carrier and their right to paid sick leave.
It comes from the Wage Theft Prevention Act. The DIR has a template in Spanish. Give it to the employee when you hire and keep a signed copy.
Other notices and flyers
California requires you to hand out several booklets when you hire. Among them:
- Workers' comp pamphlet for new employees.
- EDD disability insurance pamphlet.
- EDD paid family leave pamphlet.
- Information about sexual harassment.
The list changes with new laws. Review it every year with the DIR and the EDD.
Offer letter and handbook
The letter sums up the job title, pay, schedule and start date. The handbook explains your rules on safety, attendance and tool use. Ask the employee to sign that they received both.
6. Benefits and deduction authorizations
If you are going to deduct something from pay, you need written authorization. For example, uniforms, loans or health insurance.
In California there are limits on what you can deduct. Before you deduct, confirm the rule with your payroll service or a professional.
7. Background check
Under the California law called the Fair Chance Act, you generally cannot ask about criminal history before making a conditional job offer. You can see official information at the California Civil Rights Department.
After the offer, there are steps you must follow if you plan to withdraw it. Check those steps before you decide.
New hire report (DE 34)
You must report the new employee to the EDD with the DE 34 form within 20 days of the first day of work. The EDD explains the new employee registry on its frequently asked questions page.
Many payroll services send it for you. Confirm that they do, and keep the receipt.
Example with dates
Say you hire a roofing helper on Monday, March 3. His I-9 section 2 must be done no later than Thursday, March 6. The DE 34 must reach the EDD no later than March 23.
What to do now
- Print the checklist and use it with every new employee.
- Check that your current employees have a complete I-9.
- Keep the I-9s in their own folder.
- Download the Spanish version of the DIR's notice 2810.5.
- Before you hire, confirm the classification with the guide Employee or contractor? and read how to avoid payroll penalties.
If your company is already formed, also see the next steps after forming your LLC. For payroll, independent payroll partners can file the DE 34 for you.
FAQ
When should I complete the I-9?
The employee fills out section 1 by their first day of work at the latest. You complete section 2 within 3 business days, by checking their original documents. Keep the form in an I-9 folder separate from the employee's personnel file.
What is the DE 34?
It is the new hire report sent to the California EDD within 20 days of the first day of work. Many payroll services send it for you, but confirm they do and keep the proof of filing.
Can I ask for a criminal record on the application?
In California, in general you can't ask before making a conditional job offer, under the Fair Chance Act. After the offer, there are steps you must follow if you plan to withdraw it. If you have questions, talk to an employment lawyer.
When to talk to a professional
This article is a general guide. If your case involves a letter from the IRS, the FTB or the EDD, a lawsuit, an accident or a change in your business structure, talk to a lawyer, a tax preparer (CPA or enrolled agent) or the official agency. Every case is different.
How ODC helps you
At Oficina del Contratista we keep your bookkeeping up to date: we record your income and expenses, reconcile your accounts and explain your reports in Spanish. For taxes, payroll, insurance or legal matters, we connect you with independent partners; they provide those services, not ODC. See all services.
Are you going to hire? We help you keep your books in order and connect you with payroll partners. Message us on WhatsApp.
References
- USCIS – Completing Section 1 of Form I-9 — Deadlines and rules for Form I-9
- IRS – About Form W-4 — Federal withholding for the employee
- EDD – California New Employee Registry FAQ — DE 34 report within 20 days
- EDD – Forms and publications — DE 4 and EDD brochures
- DIR – Labor Code 2810.5 notice — Wage theft protection law notice
Runs Oficina del Contratista, a Spanish-language bookkeeping service for contractors. Has experience in management, sales and construction consulting.
Important notice: this article is educational and informational only; it is not legal or tax advice. It may contain errors or be out of date. Before making decisions, check it with a licensed expert or attorney.
