Workers compensation does not cover independent contractors. However, if you label an employee incorrectly as an independent contractor and that person incurs an injury while performing work for your company, you may have to pay large sums to cover medical bills and lost wages that ordinarily would have been covered by workers compensation. This type of insurance also varies from state to state. New Employee Hiring Obtaining certain information from each new employee hired is required. Employers are required by law to report information about any new employee to their appropriate state agency within 20 days of the employee s date of hire.
State agencies use new-hire reports to locate parents and enforce child support payment orders.
As part of our payroll service, Paychex handles all of the new-hire requirements by reporting all of a business new employees to the correct agency when they re hired. They should be made available for IRS review if requested. If required in your area Income Tax Withholding Records Names, addresses, and social security numbers of each employee. Total amount and date o each wage payment, and payment time period. Each wage payment-withholding amount.