If you’ve been running your own business for a while and have got to a point where you need to get some additional help and are going to hire employees, then it’s crucial to ensure that you start off on the right foot as an employer. To do this, you will need to make sure that your business is complying with all the legal regulations and rules that will apply to you when you start taking on employees. Along with this, you will need to consider the hiring process including where you are going to find the best talent for your company, how you’re going to advertise, and what kind of onboarding process you will have in place for new employees.
Consider Staffing Solutions
As an employer for the first time, the process of taking employees on can be quite overwhelming. There’s a lot that can go wrong, and you may feel out of your depth if it’s all completely new to you. In this situation, it might be worth considering working with a company that can help you find and hire the right employees for your business such as Snelling Staffing. They will work with you to determine your requirements for employees and match you with the right professionals for the roles you have available.
Consider Outsourcing HR
Outsourcing to a company that provides a HR department for your business is one of the best things that you can do before you start hiring your first employees. These days, there are now more and more HR services available that businesses can outsource to rather than having to hire a full-time in-house HR department. Outsourcing is often a better option as it provides you with access to trained and experienced HR professionals at a fraction of the cost of hiring them to work for you directly.
Get an EIN
When the time comes for your company to start hiring its first employees, one of the most important things that you must do is get an Employer Identification Number or EIN. The EIN is a number that will be used on any tax returns your business files, along with any other important documents that you need to submit to the IRS as an employer in the future. To get an EIN for your company, you will need to file IRS Form 55-4. You can easily do this directly from the IRS website.
Register as an Employer with Your State
Once your company begins to hire employees, you will need to begin paying state unemployment compensation taxes. These are payments that are made to the unemployment compensation fund for your state. This is for the purpose of providing short-term relief to employees who have lost their job. Before you can start hiring employees, you need to first register with your state’s labor department as an employer. You can go to the state’s Department of Labor website to find a list of state unemployment insurance tax agencies and register.
Set Payroll Up
Another reason why it is worth outsourcing to a HR company before hiring employees is that many HR professionals can help with important aspects of becoming an employer such as payroll. You’ll need to set payroll up to withhold taxes from the income of employees before it is paid to the IRS. Along with this, you’ll need to set up a payroll system that ensures employees are making contributions to Social Security and Medicare. These are typically made straight from the paycheck. The IRS website has more information on these financial obligations for you as an employer. Along with this, you may need to withhold taxes that are to be made to the state. You can get more information on this from your state’s tax agency.
Report New Hires to the State
Any new employees that your business takes on should be reported to the new hire reporting agency for your state. New hire reporting programs are in place in most states and require employers to report all new employees that start working for your company. The purpose of this is mainly so that child support payments can be taken from those employees who are liable to pay it if needed. The process of reporting new hires is different for each state, so go to the State New Hire Reporting section on the Administration for Children & Families to get further details on your state’s hire reporting agency.
Post Required Notices
There are several government agencies that require employers to post notices in the workplace on workers’ rights for their employees. The Department of Labor website has more information on this and also provides downloadable federal posters that you can print and display in your workplace. There are also tools on the website that you can use to figure out which posters you will need to display in the workplace based on your industry and the type of roles that your employees work in.
Adopt Health and Safety Policies
No matter whether you are hiring one employee or bringing on a full team, it is the responsibility of every employer to ensure that the workplace that they provide is a safe place for their workforce. When you start taking on new employees, you will be legally obliged to ensure that your workplace is compliant will all relevant requirements. Check out the Occupational Health and Safety Act (OSHA) to find out more about the requirements you will need to meet for your business, industry and roles. At the very minimum, you will need to ensure that your workplace is free from hazards, that there is a reporting policy in place for any workplace accidents, hazard reporting policies are in place, and that employees are provided with the required training to ensure that they can do their jobs in a safe manner.
Get Workers’ Compensation Insurance
Once you start hiring employees, you will be required to get workers’ compensation insurance coverage. When you will need to get this insurance will vary depending on your state. In some states, you need to get workers’ compensation as soon as you hire your first employee, while in others you’ll need to get it after you reach a certain number of employees. The purpose of workers’ compensation insurance is to protect any workers who may suffer injuries or become ill while working for your company.
Create an Employee Handbook
While creating an employee handbook for your employees isn’t legally required for companies in most states, it’s something that most experts recommend doing. This is because a handbook will make it easier for employees to understand what is expected of them in their role. You can use a handbook to describe the policies in place in your business, making sure that the responsibilities that both yourself and your employees have are clear.
Determine a Work Schedule
Some businesses aren’t a good fit for the standard 9-5 working day, so it’s worth considering what kind of days and times you will need employees to work for your business. Along with thinking about the type of hours that you will need employees to work, it’s also worth considering if you will need employees to work from your businesses premises each day of the week. Working from home and hybrid workplaces are becoming more and more common, with benefits for both employers and employees. For example, if you hire employees that are going to be working from home, then you can save money on the cost of running a larger business premises.
Get Employee Benefits
It’s worth looking into the employee benefits that you can get to offer your workforce. These days, employees expect something more than just a basic level of pay for the work that they do and being able to offer some of the most in-demand and desirable employee benefits such as health insurance and retirement plans can help you compete against other employers in your area. There are several ways that you can get employee benefits for your company, including working with companies that provide benefits for several clients that you can be grouped together with for larger employee numbers. As a result, you can save money on getting some of the best benefits for your workforce.
Finally, during the process of hiring, don’t only consider taking on full-time employees for every job that needs doing for your business. In some cases, it can be cheaper and more effective to work with a freelancer, who you can pay per task rather than needing to pay them a monthly salary. This can be an ideal set-up for jobs that you only need doing a few times a month or year, such as content creation or website redesigns. It may also be worth outsourcing to agencies for this kind of work if you want to save money on hiring, allowing you to allocate more of your hiring budget to employees who are integral to business success.
Hiring your first employees can be an exciting yet overwhelming experience. Make sure that your business is prepared by completing these steps first.