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Jenny Stone from HR Shield discusses common HR questions faced by small and mid-sized business owners. After hiring a new employee, it's crucial to address paperwork and compliance with regulations. Essential forms must be completed before the employee starts and receives their first paycheck. Key forms include the W-4 for federal income tax withholding, which must be filled out by all new hires. Compliance is important because federal, state, and local agencies may audit employee records for various reasons, emphasizing the need for proper documentation and record-keeping.