Step 4: Report New Employees and Contractors

  • 1. Register as an Employer
  • 2. Get Your Information in Order
  • 3. Register for a Payroll Tax Account
  • 4. Report Employees and Independent Contractors
  • 5. Withhold and Pay Payroll Taxes
  • 6. File Tax Returns and Wage Reports
  • 7. Provide Required Notices

You must report new employees and certain independent contractors on an ongoing basis using e-Services for Business.

New Employees

Report all new hires within 20 days of their first day of work, including:

  • Rehired employees who have not worked for you for at least 60 consecutive days
  • Employees returning from furlough, separation, or unpaid leave
  • Employees you retain when you acquire a business

Independent Contractors

Report an independent contractor within 20 calendar days, if all of the following apply:

  • You must file a Nonemployee Compensation (Form 1099-NEC) or a Miscellaneous Information (Form 1099-MISC) for their services
  • You pay them $600 or more, or have a contract for $600 or more
  • The contractor is an individual, sole proprietor, or single-member LLC

If you are unsure how to classify a worker, see Employee or Independent Contractor for more information.

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