Prepare the Proper Paperwork for Employees Make sure you're compliant with U.S. law by filling I-9 and W-9 forms.

If you do any hiring, your employees must complete Form I-9 andForm W-4. Form I-9 provides verification that each new employee islegally eligible to work in the United States. This form can beobtained at offices of U.S. Citizenship and Immigration Services, abureau of the U.S. Department of Homeland Security or download it here. Keep this form in your files in theevent an IRS inspector wants to see it.

Form W-4 indicates the employee's filing status andwithholding allowances. These allowances are used to determine howmuch federal income tax to withhold from an employee's wages.The IRS can provide you with a tax table to determine thewithholding amounts for your employees. To receive a copy of thistable, call the IRS and ask for Circular E and the supplement toCircular E or visit the IRS Web site.

Excerpted from Start Your Own Business

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