Things to Know Before Hiring Your First Employee
Investing in a business can greatly in creating additional income. Starting a business requires financial resources even if it is a small business. Once you start your business, you should gather the right resources that will help in the realization of goals and objectives. One of the important resources that every business owner needs is a team of workers. It, therefore, means that every business owners should search for the right talent that will handle the business activities the right way. No doubt, hiring the first employee can be a difficult task, especially if you are new in the business world. Most first-time employers usually end up with the wrong candidate because of the excitement. here are the guidelines to follow when hiring your first employee, read more now!
Unlike a sole proprietorship, you will have different tax obligations if you decide to hire your first employee. Tax-readiness is crucial when hiring your first employee since you will lose your sole proprietorship rights. According to the Internal Revenue Service, every full-time employee must pay taxes through the employer. One step to take to make your business tax-ready is getting an Employer Identification Number (EIN) from the IRS. Read more here about the process of getting an EIN for your business. Besides, you should pay state unemployment taxes apart from federal taxes. An understanding of tax codes is the solution to all the possible errors that might arise when filing taxes for your business.
Next, you should figure out the role that you need to fill in your business. Examine your business needs carefully before you start the recruitment process. The tasks available will help in determining the qualification to check when hiring a suitable candidate. Create a vivid job description to ensure that you receive applications from the right individuals. Remuneration and benefits are vital aspects to look into before hiring an employer. Check the revenue stream and the nature of work before deciding on the salary for the employee. As soon as you are ready, you should focus on advertising the position. The use of digital platforms such as online job sites and LinkedIn will help in finding the right candidates to fill the position.
In every workplace, an accident can occur that will cause injuries to the employees. As the employer, you will be liable for the damages sustained by the employees. For that reason, you should ensure that you have workers’ compensation insurance. A workers’ compensation insurance is a mandatory requirement if you have more than 2 employees. Read more here about the steps for getting the best workers’ compensation insurance policy.