The Checklist for Hiring Employees
A major milestone for small business owners comes when they are able to increase their operations by hiring a new employee. Whether you’re hiring your first employee or have already gone through the hiring process numerous times in the past, it’s worth your while to refresh your memory on the processes you need go through to make it official.
With this in mind, here’s a quick guide of the most important steps associated with the process of onboarding new hires:
Ensure eligibility: Before officially bringing on a new employee, you should first double check that the employee is eligible to work in the United States. Hiring someone who is ineligible for U.S. employment could open you up to fines and, in some circumstances, criminal penalties. Have your new employees fill out a Form I-9, and make sure they present valid identification documentation, such as an ID or employment authorization paperwork.
Tax withholdings: You’ll need to set up all your tax withholding records for new employees. The employee should fill out a Form W-4, which you will submit to the IRS. You’re also responsible for filling out a Form W-2 for all employees, which overviews their earnings and withheld taxes for the year. Most states will also have their own state withholding forms that must be completed.
Report to the state employment agency: All new hires must be reported to the labor agency in your state. The Small Business Association will be able to provide you with all necessary information to assist you in this process.
Insure yourself: You must have workers’ compensation, which protects your company and employees in the event of injuries sustained or illnesses contracted no the job. Each state has its own workers’ compensation insurance requirements.
Get your payroll in order: You’ll need to have a system in place for paying your employees and handling payroll taxes. If you’ve hired employees in the past you should already have taken care of this—you just need to get your new hire into the system. If, however, this is your first employee, you’ll need to build this system. You can outsource your payroll processes if you wish to do so.
Inform employees of their rights: The Department of Labor requires employers to post notices in the workplace about employee rights, and employer responsibilities. The federal government provides these posters free of charge. It is also a good idea to include this information in any employee handbooks you create.
To learn more about the steps you must take as an employer to officially bring aboard a new employee, we encourage you to contact us today at Patin and Associates.