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As a business owner, it can be an exciting time to hire your first employee. It means that the company has enough need for it, which typically means that growth has been achieved.

But it can be a lot harder than you realize to bring the right people on board. Thankfully, there are more than a few tips for hiring your first employee as a small business owner.

Get an EIN

The first and perhaps most important thing you need is an employer identification number. The EIN is used on tax returns and any other documents that may get submitted to the IRS at tax time or otherwise.

It is quick and easy to find, and can be downloaded from the IRS’s website in just a few minutes. It is a must-have for any business.

Worker’s Compensation

Any time there are employees involved, an employer should have worker’s compensation insurance. Accidents can happen, and if you have an employee working on premises, then there is a chance that they could be injured.

While this applies less for remote employees, it is an essential item for on-site employees. Moreover, worker’s compensation coverage is legally required for just about any state out there, so it is something that you are likely going to have to provide anyway.

Set Payroll

When you hire a new employee, one of the first things that you should do is have them set up in your payroll system. Not only will this avoid any unpleasantries by paying the employee on time, but it will withhold taxes as well.

Instead of leaving that to the employee, relevant taxes such as Medicare and Social Security, as well as state and federal taxes, can all be withheld. It makes life for the employee a lot simpler, especially when tax time comes. Payroll software is a must for any small business that is hiring so that they can keep things organized and easy to reference. Proper software can go a long way for businesses of all sizes.