5 Steps for Hiring Your First Employee

5 Steps for Hiring Your First Employee5 Steps for Hiring Your First Employee

You’ve done it: You’ve opened your dream business and now it’s time to start staffing. Maybe you were running things on your own for a while and determined you needed more resources. Perhaps you need staff before you can even unlock your doors to the public. In any case, hiring your first employee is a big (and exciting!) step. What are the 5 steps you for hiring your first employee? We’ll lay it out for you here!

Understand the Laws

Regardless of your type of business you’re running, there are employment laws you’ll need to keep in mind through the hiring process. State and federal anti-discrimination laws apply immediately, even as soon as you begin advertising the position. For a list of laws you need to abide by, we turned to FindLaw:

Get Your Employer Identification Number

If you don’t already have one, you’ll definitely need an Employer Identification Number (EIN) before you can even begin the hiring process. Obtaining this number is free and immediate through the IRS website.

Understand Your Taxes

There are a number of taxes you’ll have to withhold from your employee’s paychecks, including:

  • Federal Income Tax
  • Social Security and Medicare Taxes
  • Additional Medicare Tax
  • Federal Unemployment Tax

According to IRS.gov, it is also critical that you “keep all your employment tax records for at least 4 years after the tax becomes due or is paid, whichever is later.”

Insure Yourself

You’ve likely already obtained small business insurance, but before you hire anyone you’ll want to make sure workman’s compensation insurance is part of your package. Even if you are operating a business where you wouldn’t expect an injury to occur, anything is possible—and worker’s comp insurance is a legal requirement anyway.

Verify

Once you’re gone through the hiring process and are ready to bring your first staffer on board, remember you are responsible for verifying your candidate is eligible to work in the United States by filling out an I-9, Employment Eligibility Verification within 3 days of your new employee’s first day.

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