{"id":4201,"date":"2017-09-19T12:30:32","date_gmt":"2017-09-19T16:30:32","guid":{"rendered":"https:\/\/www.insureyourcompany.com\/?p=4201"},"modified":"2024-05-08T08:26:31","modified_gmt":"2024-05-08T12:26:31","slug":"what-you-need-to-know-before-hiring-your-first-employee","status":"publish","type":"post","link":"https:\/\/insureyourcompany.com\/blog\/what-you-need-to-know-before-hiring-your-first-employee\/","title":{"rendered":"What You Need to Know Before Hiring Your First Employee"},"content":{"rendered":"

Hiring your first employee is a major milestone in the life of a small business owner. It’s a great feeling to move up in the world! You might have spent your first several months or years working out of a spare room in your home, or found yourself sitting in an office all by yourself with no one to bounce ideas off of or motivate you when things got difficult.<\/p>\n

Now, it’s time to hire your first employee!<\/p>\n

There are, however,\u00a0several things you need to know before you bring that them on board.<\/p>\n

You Need an EIN<\/h2>\n

Your EIN, or\u00a0Employer Identification Number, is necessary for reporting taxes, contacting the government about your employees, and more.<\/p>\n

Set Up Tax Withholding<\/h2>\n

Hiring an employee means that you’re going to have to juggle taxes. Make sure you know what you’re responsible for paying and what your employee is responsible for paying, then put a plan in place to deal with regular payments.<\/p>\n

You Need More Insurance<\/h2>\n

Once you hire an employee, you need to be sure that you have worker’s compensation insurance<\/a>. Even the safest desk job can have hazards, and the last thing you want is to destroy your business because your new secretary slipped and fell in the bathroom! Make sure you have worker’s compensation and general liability insurance<\/a> that will protect both you and your employees.<\/p>\n

Register With the State<\/h2>\n

When you have employees, you’ll need to contact the\u00a0state’s labor department<\/a>\u00a0so that you can make unemployment compensation payments that will offer short-term benefits to individuals who need help getting back on their feet after a job loss.<\/p>\n

Report Your Employees<\/h2>\n

Your state’s\u00a0new hire reporting<\/a>\u00a0keeps track of all employees who work for you (and anyone else). As you bring employees on board, make sure you register them with the state’s new hire reporting board. Most states and industries require this to take place within 20 days of hiring.<\/p>\n

Check Your Notices<\/h2>\n

There are several federal guidelines listing what information must be posted in your business for your employees. This may include workers’ rights, specific safety information, and more, depending on your industry. Visit the\u00a0Department of Labor<\/a>\u00a0website to learn more about the information you need to have posted for employees in your business.<\/p>\n

Develop Your Policies<\/h2>\n

If you’ve never had an employee before, you may not have policies yet! While your policies will probably be a work in progress for a little while, make sure you have policies that cover everything from excessive tardiness to specific procedures for dealing with customers or specific tasks throughout the day. This practice can help ensure that employees know what’s expected of them, as well as giving you something to refer back to if you have problems with an employee.<\/p>\n

Select Your Benefits<\/h2>\n

As a small business owner, you likely can’t afford to provide the types of employee benefits<\/a> many large businesses can. You can, however, choose benefits that are more likely to attract quality employees. These include, but are not limited to:<\/p>\n