Payroll tax documents: what an employer files, hands out and keeps
By Arthur Teboul, DokuTrak · Published
In brief
Payroll tax documents fall into three piles: the new hire file with Forms W-4 and I-9, and the records of each pay run and tax deposit. The third pile is the returns you file, such as Form 941 each quarter and Forms 940, W-2 and W-3 after year end.
The checklist: Employer payroll file: hire, pay run, year end
Work through it in three passes: once per hire, once per pay run or quarter, once at year end. Note the date filed next to each return.
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Build your own list: Answer 10 yes-or-no questions and the tax document checklist generator combines the lists that apply into one checklist.
New hire file (per employee)
- Form W-4, signedEffective with the first paycheck; a new one when the employee updates it
- Form I-9 and the identity and work papers seenEdition 01/20/25 (or 08/01/23 expiring 05/31/2027), kept on file, not mailed
- Social security card or verified SSNName and number exactly as on the card
- State withholding certificate and new hire reportOnly where your state requires them
- Direct deposit form and voided checkOr a bank letter with routing and account numbers
Contractors (per vendor)
- Form W-9, signedCollected before the first payment
- Signed contract or statement of workShows the work is done as a contractor, not an employee
- Total paid in the calendar year$2,000 or more in 2026 triggers Form 1099-NEC
Each pay run and quarter
- Payroll register for each pay dateHours, gross pay, deductions, each tax withheld
- Time records, with overtime hours split outBacks up the overtime figure for the W-2
- Employee tip reportsMonthly reports from tipped staff; Form 8027 for large food and drink sites
- EFTPS deposit confirmationsMonthly or semiweekly, as the lookback period sets
- Form 941 as filed, each quarterOr Form 944 if the IRS told you in writing; Form 943 for farm workers
- State withholding and unemployment wage reportsYour state sets the forms and due dates
- Sample pay stubsChecks that withholding matches the register
Year end and corrections
- Forms W-2 for every employee and Form W-3With the new box 12 codes TP, TT, TA and box 14b for 2026
- Form 940 for FUTAWith the FUTA deposits made during the year
- Forms 1099-NEC and the transmittalOne per contractor paid $2,000+ in 2026 ($600+ for 2025 payments still owed)
- Benefit totals for the W-2Health premiums, HSA and 401(k) amounts from the plan reports
- Form 8655 and the payroll service’s quarterly reportsIf an outside company files for you
- Forms 941-X, W-2c and W-3cOnly if a filed form had an error
The new hire file
Payroll starts before the first paycheck. Ask every new employee for a signed Form W-4 and make it effective with the first wage payment (IRS Publication 15 (2026)). Record the name and SSN from the social security card when it is available (IRS Publication 15 (2026)).
Form I-9 is not an IRS form. It belongs to USCIS, and you keep it on file instead of sending it in (USCIS, Form I-9). Keep each one for 3 years after the hire date or 1 year after the job ends, whichever is later (USCIS M-274, Retaining Form I-9).
Hand the new hire the right edition. USCIS dates the current form 01/20/25 (USCIS, Form I-9). An 08/01/23 printing still works when the top of its first page shows an expiration of 05/31/2027, while one showing 07/31/2026 has lapsed (USCIS, Form I-9). If your payroll software prints the form, check that it has been updated.
The state side varies. Your state runs a new hire registry, and Pub. 15 points employers to it (IRS Publication 15 (2026)). Your state may also have its own withholding certificate, so check its revenue site for the form it uses.
- Form W-4, signed, for federal income tax withholding.
- Form I-9 with the employee’s identity and work papers reviewed, such as a passport or a driver’s license with a social security card.
- State withholding certificate, where your state has one, and the new hire report.
- Direct deposit form with a voided check or a bank letter.
Employee or contractor: Form W-4 or Form W-9
The worker’s status sets which form you collect. Form W-4 is the employee’s withholding certificate: it tells you how much income tax to hold back from each paycheck. Form W-9 is the contractor’s request for a taxpayer ID, and you withhold nothing unless backup withholding applies. Settle the status before the first payment, because it drives every form that follows.
Contractors are paid on Form 1099-NEC rather than a W-2. Pub. 15 notes that the line moved from $600 to $2,000 for payments made after 2025 (IRS Publication 15 (2026)). So a business that paid a freelance designer $1,200 in 2026 files no Form 1099-NEC for them in January 2027 (IRS Publication 15 (2026)). Keep the signed Form W-9 and the contract with each vendor file, and see the contractor checklist for the rest.
Each pay run and each tax deposit
Each payroll creates its own paper trail. The payroll register is the report that lists, for one pay date, each worker’s hours, gross pay, deductions and every tax withheld. Keep it with the time records that back up any overtime.
Deposits follow a schedule the IRS sets for you. You deposit monthly or semiweekly, based on the tax you reported during a lookback period, not on how often you pay people (IRS Publication 15 (2026)). The lookback period is the past stretch of returns the IRS reviews to set your schedule, so it can change from one year to the next. Keep each EFTPS confirmation with the quarter it belongs to.
For 2026, social security tax is 6.2% each for employer and employee, up to a wage base of $184,500 (IRS Publication 15 (2026)). Medicare tax is 1.45% each, with no wage limit (IRS Publication 15 (2026)). A household employer owes these taxes once cash wages to one worker reach $3,000 in 2026 (IRS Publication 15 (2026)).
Returns and their due dates
Employers file Form 941 every quarter, by April 30, July 31, October 31 and January 31 (IRS Publication 15 (2026)). A due date on a weekend moves to the next business day (IRS Publication 15 (2026)). So the third-quarter 2026 return is due November 2, 2026, and the fourth-quarter return, Form 940 and the 2026 Forms 1099-NEC are due February 1, 2027 (IRS Publication 15 (2026)). Small employers the IRS notifies in writing file one Form 944 a year instead (IRS Publication 15 (2026)). Farm employers report farm workers on Form 943 (IRS, Employment tax forms).
Form 940 reports federal unemployment tax once a year, due January 31 (IRS Publication 15 (2026)). Forms W-2 and W-3 close the year. For 2026 forms, both the employee copies and the SSA filing are due by February 1, 2027 (Form W-2 and W-3 instructions (2026)).
| Form | What it reports | When |
|---|---|---|
| Form 941 | Withheld income tax, social security and Medicare | Each quarter: April 30, July 31, October 31, January 31 (IRS Publication 15 (2026)) |
| Form 944 | Same taxes, once a year | Only if the IRS told you in writing to use it (IRS Publication 15 (2026)) |
| Form 943 | Taxes on farm workers’ wages | Annual (IRS, Employment tax forms) |
| Form 940 | Federal unemployment (FUTA) tax | January 31 (IRS Publication 15 (2026)) |
| Forms W-2 and W-3 | Each employee’s wages and withholding | February 1, 2027 for 2026 forms (Form W-2 and W-3 instructions (2026)) |
| Form 1099-NEC | Contractor pay of $2,000 or more in 2026 (IRS Publication 15 (2026)) | February 1, 2027 for 2026 payments (IRS Publication 15 (2026)) |
| Form 941-X, Form W-2c and Form W-3c (IRS, Employment tax forms) | Corrections to a filed form | When you find the error (IRS, Employment tax forms) |
What changes on the 2026 Form W-2
The 2025 law on tips and overtime reaches the W-2 for 2026. Box 12 gets new codes: TP for cash tips reported to you, TT for qualified overtime, and TA for employer payments to a Trump account (Form W-2 and W-3 instructions (2026)). Box 14 splits in two, and box 14b holds the Treasury tipped occupation code (Form W-2 and W-3 instructions (2026)).
So the payroll file now needs more detail than it did. For example, keep the employee tip reports and an overtime figure for each worker, split out from regular pay. Without them you cannot fill those boxes at year end.
Payroll services and how long to keep it all
A payroll company files under your EIN, but the tax stays yours. Form 8655 is how you authorize a reporting agent to sign and file payroll forms for you (IRS Publication 15 (2026)). Keep a copy of the signed form, plus the quarterly reports the service sends.
Pub. 15 asks you to keep all employment tax records at least 4 years, ready for IRS review (IRS Publication 15 (2026)). That covers your EIN, wage payments and dates, tips reported, and copies of filed returns (IRS Publication 15 (2026)). The I-9 runs on its own USCIS clock, so store it apart from the tax files.
Your accountant will ask for this file at year end. The W-2 guide explains each box an employee will ask about.
Questions people ask
Which forms are used for payroll taxes?
Federal payroll runs on Forms W-4 and I-9 at hire, Form 941 each quarter, and Forms 940, W-2 and W-3 after year end (IRS Publication 15 (2026)). Contractors get Form 1099-NEC, and your state adds its own forms.
What is the difference between Form 941 and Form 944?
Form 941 is filed each quarter. Form 944 is a yearly version for small employers, and you use it only if the IRS notified you in writing (IRS Publication 15 (2026)).
What forms does a new employee fill out?
A new employee signs Form W-4 for withholding and completes Form I-9 with identity and work papers (IRS Publication 15 (2026)). Your state may add a withholding form, and you send a new hire report.
When are W-2s due for 2026?
For 2026 forms, give employees their copies and file with the SSA by February 1, 2027 (Form W-2 and W-3 instructions (2026)). File Form W-3 with them.
How long should an employer keep payroll records?
Keep employment tax records at least 4 years (IRS Publication 15 (2026)). An I-9 stays on file until the later of 3 years from the hire date or 1 year after the person leaves (USCIS M-274, Retaining Form I-9).
Sources
- IRS Publication 15 (2026): 2026 tax rates and wage base, the $2,000 1099-NEC threshold, deposit schedules, Form 941, 944 and 940 due dates, Form W-4 and new hire rules, Form 8655 and the 4-year record rule.
- Form W-2 and W-3 instructions (2026): New 2026 box 12 codes TP, TT and TA, box 14b, and the February 1, 2027 due date for 2026 forms.
- IRS, Employment tax forms: The list of federal employment tax forms, including Forms 943, 941-X, W-2c and W-3c.
- USCIS, Form I-9: Form I-9 is kept by the employer, not filed; the current edition is 01/20/25, and the 08/01/23 edition expiring 07/31/2026 is no longer valid.
- USCIS M-274, Retaining Form I-9: Keep Form I-9 for three years after the date of hire or one year after employment ends, whichever is later.
About the author
Arthur Teboul (Founder, DokuTrak) is building DokuTrak after watching professionals lose hours chasing clients for documents over email. Arthur Teboul.
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How this page was made (methodology): it is built from the primary sources listed under Sources, and every rule and figure on it links to the source it comes from. Last updated October 25, 2026. Spotted an error or a rule that changed? Contact us.
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