Employee onboarding forms: A guide to types, timing and storage
Quick insights
- Using a standardized set of internal forms, such as handbooks and non-disclosure agreements (NDAs), helps to ensure every employee receives the same information and training.
- Onboarding forms vary by company but some forms, like the I-9 and W-4, are required by federal law and have strict deadlines for submission.
- While storing paper files is legal, digital storage with strong encryption may be a more efficient way to maintain security and meet retention requirements.
Hiring a new employee can be an exciting milestone for any business, but it may also come with a significant paper trail. For business owners and HR managers, the onboarding process is more than just a warm welcome. It’s a period for establishing legal compliance, setting clear expectations and protecting company assets.
Understanding the types, timing and tracking of different onboarding forms can help ensure that your new hire starts on solid ground, and your business remains in compliance with federal and local labor laws.
This guide walks through some common onboarding forms, when to introduce them and how to properly store them.
Why employee onboarding is important
A well-organized onboarding plan can play a role in employee retention. Employees who have a positive onboarding experience may be more likely to stay with a company long-term. Beyond the "culture" aspects, onboarding is often your first line of defense regarding legal compliance.
Missing a signature on a tax form or failing to verify employment eligibility doesn't just create an administrative headache—it can lead to penalties from the Department of Labor or the Internal Revenue Service (IRS). Furthermore, onboarding documentation helps protect the business in the event of a dispute. When roles, rules and benefits are clearly documented in writing from day one, there may be less room for costly misunderstandings later.
Common onboarding forms
The forms you collect during onboarding generally fall into two categories: legally required government forms and internal company documents. While different industries—like healthcare or financial services—might require additional background checks or licenses, the following forms tend to be the common "must-haves" for most U.S. businesses.
Note that requirements vary by state. Check with your state labor board for additional local mandates.
Form I-9, Employment Eligibility Verification
The I-9 may be one of the most critical document in your folder. It is used to verify the identity and employment authorization of individuals hired for work in the U.S.
- When to introduce it: You should provide this to the employee on or before their first day.
- Timing: The employee should complete Section 1 on the first day of employment, if not before. The employer ideally should complete Section 2 within 3 business days of the hire date.
- When to update: Generally, this form is not updated unless an employee’s work authorization expires and needs re-verification.
Form W-4, Employee’s Withholding Certificate
This IRS form advises how much federal income tax to withhold from an employee's paycheck based on their filing status and dependents.
- When to introduce it: This should be part of the initial "new hire packet" provided on or before the employee’s first day.
- Timing: This form should be completed before the first payroll run to ensure accurate tax withholding.
- When to update: Employees may want to or need to submit a new W-4 if they have a major life event, such as getting married, having a child or buying a home.
Direct deposit authorization
While not a federal requirement, many businesses prefer electronic payments. This form collects the employee’s bank account and routing numbers for payment purposes.
- When to introduce it: Generally, this form is provided within the first few days of employment. This form is commonly included with a first day packet of paperwork for the employee.
- Timing: You may want to collect this document as soon as possible so the employee’s first paycheck can be delivered electronically.
- When to update: If the employee wants to change the bank account where they receive their direct deposit, they will need to update this form.
Non-disclosure agreements (NDAs)
An NDA (or confidentiality agreement) protects your business's proprietary information, trade secrets and client data. This document can be especially vital for companies that need to protect intellectual property.
- When to introduce it: This document is generally sent with the formal offer letter so the employee can review the terms before accepting the job.
- Timing: It ideally should be signed before the employee is given access to any sensitive company information or systems.
- When to update: These are rarely updated unless the employee moves into a significantly different role that requires a more robust agreement.
Employee handbook acknowledgment
Employee handbooks typically include company policies, from dress code to anti-harassment rules. The form element is usually a page in the handbook where the employee signs to acknowledge they have read and understood these rules.
- When to introduce it: This ideally should be included with first day documents and paperwork.
- Timing: While you may want to give the employee a few days to read the handbook, it might be helpful to ask the employee to sign the acknowledgement by the end of their first week.
- When to update: Every time you make a significant change to company policy, you may want to distribute the update and get a new signature.
Storing employee onboarding forms
In addition to distributing these forms, you will need to decide how to keep them. Proper storage typically encompasses two factors: security and accessibility.
Digital storage
Digital storage tends to be the preferred method for modern businesses. Digital files are can be easier to organize, take up no physical space and are harder to lose in the event of a fire or flood.
Additionally, using a secure Human Resources Information System (HRIS) can encrypt sensitive data like Social Security numbers (SSNs) and provide another layer of security to your sensitive employee files. If you go digital, you may want to have a backup system in place that only authorized personnel can access.
Physical storage
If you prefer paper files, it can be a good idea to keep them in a locked, fireproof cabinet. You may want to keep general personnel files (resumes, performance reviews, etc.) separate from confidential files (I-9s, medical records or background checks).
Retention rules
Keep in mind that it’s generally advised to keep these even if an employee leaves the company. For example, federal law requires you to keep I-9 forms for three years after the date of hire or one year after employment is terminated, whichever is later.
You may want to check local and federal guidelines for document retention and the timelines associated with each type of form.
In summary
Successful employee onboarding can be a blend of welcoming a new team member, investing in training and checking the necessary legal boxes. By staying on top of federal requirements like the I-9 and W-4, and implementing internal safeguards like NDAs and handbooks, you can help protect your business and your staff.
