Important Things to Look Into Before Hiring Your First Employee
Venturing in business is one way that you can boost your income. Starting a business requires financial resources even if it is a small business. Every business owners need to gather the right resources that will help in achieving the set goals and objectives. Every business owner understands the value of a qualified workforce. As a small business owner, you should identify the right talent that will deliver the expertise that you need for your business operations. 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!
Hiring an employee means that your business will get new tax obligations which might not be necessary for sole proprietorship. For that reason, before you hire your first employee, you should ensure that your business is tax-ready. The IRS requires all full-time employees to pay tax, and it is the responsibility of the employer to withhold and remit the taxes. 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. Learn about the tax codes to avoid making mistakes when filing your taxes.
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 position available in the business will be useful in knowing the qualification that you need from the candidates. If you want to be sure of getting appropriate job applications, you should have a job description and list all the duties. Also, you will be required to decide on the salaries. The salary that you set for the position should be financially sustainable for your business. Now that you are ready to hire, you should ensure that you advertise the position. Using digital platforms such as LinkedIn will give you access to quality talent.
In every job site, there are risks and dangers. If an employee sustains injuries, the employer should be the one to take care of the associated financial damages. It, therefore, explains the need for workers’ compensation insurance. It is mandatory for an employer to have workers’ compensation insurance if the workforce exceeds two employees. Read more here about the steps for getting the best workers’ compensation insurance policy.
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