How to Hire Employees: 15 Steps to Help You Hire
If you’re ready to hire your first employee, you might be overwhelmed. There are many steps to the process and a long list of hoops to jump through.
But it’s not that complicated. You just need to get organized and know what you’re dealing with from the beginning.
Get the ball rolling:
Before you start interviewing candidates, there’s some legwork to take care of first. Here are the points to cross off your list before you start meeting with potential new employees.
1. Get your EIN
Before you hire your first employee, set up your EIN, or Employer Identification Number. This will allow your business to be recognized for tax purposes.
2. Register with your state’s labor department
Register with the labor department in your state before taking on employees. You’ll also be required to pay state unemployment compensation taxes.
3. Set up worker’s compensation insurance
Set up worker’s compensation insurance in case an employee is injured on the job. It’s generally a good idea to assume you’ll need it.
4. Choose a payroll system and familiarize yourself with employer tax withholdings
Choose a payroll system and familiarize yourself with employer tax withholdings. You’ll be responsible for withholding a portion of your employees’ income and making tax payments.
Prepare to hire:
Now comes the fun part—meeting potential candidates.
5. Write a job description
Write a clear, focused job description for the position you’re hiring for. It will serve as a benchmark to measure your employee against in the future.
6. Post your job opening
Post your job description on relevant classified sites and your business’s LinkedIn page.
7. Know what questions you can and can’t ask
Be aware of what questions are legally off-limits to avoid discrimination. Check out our article on things you should never ask job applicants for more detail.
8. Interview and hire
Set up interviews and hire your employee based on their experience and attitude.
Do the paperwork:
Once you’ve found the right person, it’s time to make it official.
9. Have your employee fill out a W-4 and an I-9
Your employee will need to fill out a W-4 and an I-9 form before they start working.
10. Report each new employee to your state’s new hire reporting agency
Report new hires or rehired employees to your state’s directory within 20 days of hiring to enable child support enforcement.
Set up your workplace:
Make sure your workplace is employee-ready.
11. Post required posters and notices
Hang up federal posters that alert employees of their rights as workers. Research your state’s requirements for additional posters.
12. Adopt workplace safety measures
Comply with the requirements set forth by the Occupational Safety Health Act to provide a hazard-free workplace.
Get your employee ready:
Just a few more things before your new employee is ready to work.
13. Onboard your new employee
Make sure your employee knows what is expected of them and what is and isn’t okay in your office. Consider writing an employee handbook.
14. Keep a personnel file on your new employee
Keep track of all important employee documentation in a locked cabinet.
15. Set up employee benefits
Meet with your employees to sign them up for health insurance and a 401(k) plan, if applicable.
While it may feel daunting at first, hiring employees is straightforward when you break it down into manageable steps.
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I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
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