Payroll intake review against 4 source guides

• Keep tax withholding data and work authorization verification in separate files.
• If the SSN is missing or replaced by an ITIN, flag it immediately.
• If the I-9 documents are not present, flag the employer's verification step.
• These forms handle tax calculation, not legal authorization.
• A received scan of these documents does not constitute a compliance verdict for the accounting firm.

Document missing items without treating the accounting handoff as proof of legal compliance.

The review scope for an already-classified employee separates tax withholding data from work authorization verification. You are required to get each employee's name and Social Security number (SSN) and to enter them on Form W-2 (this requirement also applies to resident and nonresident alien employees), according to Internal Revenue Service. Readers comparing a nonresident withholding certificate can use the Nonresident Form W-4 worksheet with 5 fields. The firm must verify that the handoff contains a valid SSN because the IRS states, "Do not accept an ITIN in place of an SSN for employee identification or for work," according to Internal Revenue Service. This distinction keeps the payroll file aligned with federal reporting standards without conflating tax identification with employment eligibility.

Keep the withholding certificate and the verification process in separate columns of your intake checklist. The W-4 addresses tax withholding; the I-9 addresses identity and employment authorization. Mixing these two data streams creates risk for the firm and the client. If the employee is already classified, the firm does not need to re-evaluate that status. The task is to ensure the payroll records have the correct SSN and that the employer has handled the I-9 requirements. The goal is a clean handoff where the firm knows what it has and what the employer is responsible for.

Start the file review by verifying the employee’s identity and tax data. When you see the identification number in the handoff, check the first digit. You can identify an ITIN because it is a 9-digit number that begins with the number "9" and is formatted like an SSN (NNN-NN-NNN), according to Internal Revenue Service. If the number starts with 9, flag it immediately. Mark the file as missing a valid SSN and request the correct documentation from the employer.

Next, locate the signed withholding certificate. To know how much income tax to withhold from employees' wages, you should have a Form W-4, Employee's Withholding Certificate, on file for each employee, according to Internal Revenue Service. Check the document for a signature. A separate signature check for e-file sits in Form 8879 signature rules: 3 checks before you e-file. Ask all new employees to give you a signed Form W-4 when they start work, according to Internal Revenue Service. If the form is unsigned or missing, note this gap in your review log. Do not calculate withholding amounts based on an unsigned form.

Finally, review the exempt status if applicable. If the employee claims exempt status, verify the renewal timeline. To continue to be exempt from withholding in the next year, an employee must give you a new Form W-4 claiming exempt status by February 15 of that year, according to Internal Revenue Service. This check ensures the payroll records reflect the current withholding instructions without assuming the status carries over automatically.

Use this section to separate the identity data from the tax data. The name and SSN belong to the identity check, while the signed W-4 belongs to the withholding check. Document any missing items in the handoff log before entering the client’s payroll system. This process keeps the accounting firm’s role distinct from the employer’s legal verification duties.

The following table summarizes the specific intake guidance provided by the four source guides. Each row lists the publisher and the exact requirement or recommendation stated in their respective documentation.

The accounting firm reviews the handoff to confirm the client employer has completed its legal duties. The regulatory text specifies that an employer or recruiter or referrer for a fee must examine documents that evidence the identity and employment authorization of the individual in conjunction with completing the Form I-9, according to Cornell Legal Information Institute.

The deadline for this examination is specific. The regulation requires completing section 2—“Employer Review and Verification”—on the Form I-9 within three business days of the hire, according to Cornell Legal Information Institute. The employer must sign the attestation with a handwritten signature or electronic signature in accordance with the specified paragraph of the section. Your intake checklist should verify that the client’s file shows this signature and date. If the handoff lacks a signed Section 2, the firm should flag it as missing rather than assume the process occurred.

Documentation details matter for the audit trail. The identification number and expiration date (if any) of all documents must be noted in the appropriate space provided on the Form I-9, according to Cornell Legal Information Institute. When reviewing the client’s file, check that these specific data points are recorded. A blank space for an expiration date on a document that has one indicates an incomplete review.

State and local tax withholding forms vary by jurisdiction. Depending on the state and locality, new hires may also need to complete these forms, according to Paychex. Some states may have their own new-hire requirements including but not limited to, paid sick leave notifications, wage-theft prevention and unemployment notices, sexual harassment, and workers' compensation pamphlets, according to Paychex. The inventory of forms does not enumerate or confirm the reader's applicable state requirements. Do not assume a national checklist settles every state form requirement.

Worker classification is a legal determination separate from payroll setup. Independent contractors can sometimes qualify as employees in a legal sense, according to U.S. Small Business Administration. Payroll setup does not determine employment status. Do not use this intake review to decide worker classification. The SBA notes that before finding the right person for the job, you’ll need to create a plan for paying employees, according to U.S. Small Business Administration. These statements are guidance, not additional mandatory form requirements.

Mark the state-form review as a separate line item in the handoff. List which state-specific notices or pamphlets the client employer must provide. Document missing items without transmitting personal information. Keep the scope limited to verifying that the employer has initiated the state-specific documentation process.

Take one new-employee handoff and mark four lines. The name line is filled in. The identification number has 9 digits and begins with 9, so treat that line as missing a valid SSN and do not use the number for employee identification or for work. The withholding certificate is on file but has no signature, so do not calculate withholding from it. Section 2 of Form I-9 has no employer signature and no date, so flag the employer review instead of assuming it was completed within three business days. The state-form line is blank. Write the missing lines in the handoff log, leave personal details out of the note, and ask the client to confirm the records before anyone enters payroll. On Form I-9, the identification number and expiration date, if any, should already be written in the space the form provides.

Review one existing new-employee handoff and mark whether the employee name/SSN, signed W-4, employer I-9 responsibility and state-form review are documented. List missing items without transmitting personal information.

Open the client file and check the four intake points against the source guides. The U.S. Small Business Administration advises to "Establish a basic payroll structure to help you hire employees," according to U.S. Small Business Administration. Use this as a starting point for the structure you are reviewing.

Create a simple checklist for the handoff. The Accounting Client Intake Checklist for a Clear Handoff is a related list for marking what the wider client handoff already contains and what is still missing. Mark each item as present or missing. Do not enter the data into the payroll system until the missing items are resolved by the client.

If an item is missing, write a note in the handoff file. State the specific document that is absent. Do not ask the employee to send the document directly to your firm. Ask the client to collect the item and confirm it is in their records.

Can an employee ITIN replace the SSN in the payroll file?

No. An ITIN is a nine-digit number that begins with 9, which distinguishes it from the SSN required for employee identification in this context.

When should a new employee provide a signed W-4?

When they start work. This timing aligns the withholding certificate with the beginning of the employment relationship.

Does an exempt W-4 carry into the next year automatically?

No, exempt status does not renew automatically. If this new form is not received by the deadline, the exemption does not carry over.

Who owns the I-9 review deadline?

The employer is responsible for completing Section 2, titled "Employer Review and Verification," on the Form I-9 within three business days of the hire according to Cornell Legal Information Institute. The regulation further requires the employer to sign the attestation with a handwritten or electronic signature in accordance with the specified paragraph.

Can a national checklist settle every state form requirement?

No, state and local requirements vary. Depending on the state and locality, new hires may also need to complete state and local tax withholding forms according to Paychex. This guide does not enumerate the specific forms applicable to every location.