You found that your startup has been starting to turn down work because you and your initial partners are too busy, or you have identified a possible revenue stream that can come into fruition with the help of a specialized worker, or you’ve noticed company stifling productivity due to the many duties that are assigned to you. You and your small business may be ready to hire their first official employee.
Even though many small businesses are aware that this stage will eventually come, many do not know how to properly traverse this new concept of hiring outside talent.
Hiring Your First Official Employee: Tips
- You will most likely need to secure an EIN, or an employer identification number. Typically referred to as form SS-4, an employer identification number will create the necessary paper trail when preparing business statements and when identifying receipts. Your employer identification number will also simplify withholding of federal income and wage taxes.
- Verifying your employee’s eligibility. Form I-9 allows you to examine documents that will help confirm citizenship, and the employee’s eligibility to work for a business in the United States. Once of the benefits of this form is that it can be filed online.
- The importance of workers insurance, and employee/employer rights. Businesses in most jurisdictions are required to have some sort of workers compensation coverage through the state, or via some sort of self-insured plan. It’s important to exhibit specific posters that display your rights, as well as the rights of your employees, throughout the workspace.
Stay organized with an online HR suite. Being a valuable employer is not only about meeting performance thresholds, but it is also about making sure that you stay organized for the sake of your business and your employees. Bridge the information gap by offering an online hub where employees can educate themselves when it comes to benefits and company policies.