Small Business Guide - Welcome to Alabama A&M University

S m a l l B u s i n e s s H a n d b o o k f o r N o r t h A l a b a m aStep 2: Set up Records for Withholding Taxes:- By Law you have to keep records of employment taxes for at leastfour years.- Submit a signed Federal Income Tax Withholding (Form W-4) to theIRS.All responsibilities for an employer regarding Tax Withholdings aredescribed at the following website:http://www.irs.gov/pub/irs-pdf/p15.pdf?cm_sp=ExternalLink-_-Federal-_-Treasury- Submit Copy A of Forms W-2 (Wages and Tax Statement) to the SocialSecurity Administration (SSA).Employers must send Copy A of Forms W-2 (to the Social SecurityAdministration by the last day of February (or the last day of Marchif you file electronically) to report the wages and taxes of your employeesfor the previous calendar year. In addition, employersshould send copies of Form W-2 to their employees by January 31of the year following the reporting period.- State Taxes: Depending on the state where your employees arelocated, you may be required to withhold state income taxes. Goto the website below for the requirements:http://www.ador.state.al.us/salestax/register.htmlStep 3: Employee Eligibility Verification (Form I-9)Form I-9 is used to prove if the employee is eligible to work in theUnited States. Instructions for completing a Form I-9 is available atthe following website: http://www.uscis.gov/files/nativedocuments/m-274.pdfAn online copy of Form I-9 can be found at the above website.Step 4: Register with Your States New Hire Reporting ProgramEmployers have to report a new employee within the first 20 days tothe state directory. Please visit the Alabama Department of IndustrialRelations Homepage shown below for further information about theregistration and requirements for the reporting of new employees.http://dir.alabama.gov/nh/Step 5: Obtain Workers' Compensation InsuranceBusinesses with employees are required to carry Workers' CompensationInsurance coverage through a commercial carrier, on a selfinsuredbasis, or through the state Workers' Compensation Insuranceprogram. Please visit the website below for more information.http://dir.alabama.gov/wc/insurance.aspx20