When thinking about how to hire your beginning employee, your fiftieth, or some seasonal worker help, there are a few important things to consider. You need to find the correct candidates and make sure you ’ ve set everything up correctly ( and legally ) .
not to fret — we ’ rhenium here to help with the basic steps of hiring an employee. ( This post contains general guidance. For advice specific to your clientele, be sure to consult with a professional. ) here ’ s a checklist for how to hire employees, including what you need to do before and after hiring .
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Before you hire employees
1. Make sure you have an EIN (Employer Identification Number).
Before hiring employees, you need to register your business with federal and state authorities. The IRS requires every business with employees to have something called an Employer Identification Number ( EIN ), a unique nine-digit number used for tax ID purposes .
An EIN is basically like a Social Security number for a business. If you operate your business as a pot or partnership, you may already have one. If not, you can get an EIN by applying on-line .
additionally, each state has a different registration process for getting a state employer identification number. Visit your express ’ s labor department web site for more information. In California, for exercise, the EDD ( Employment Development Department ) has an on-line service that issues an employer payroll tax account total within a few minutes of registration in most cases .
Learn more about what an employer Identification Number is and how to get one .
2. Set up records for withholding taxes.
When you think about how to hire your first employee, you need to take taxes into score. Before you start searching for the properly employee, you need to fill out paperwork to pay three different types of withhold taxes .
- Federal income tax withholding.Your new employee needs to complete Form W-4 (Employee’s Withholding Certificate), which asks them how much federal income tax to withhold from their pay. You then submit the form to the IRS.
- Federal Wage and Tax Statement. You’re responsible for filling out Form W-2 for every employee, detailing their earnings and taxes withheld for the year. You need to send a copy to your employees by January 31, covering the previous year. Then send Copy A of the W-2 forms to the Social Security Administration by the last day of February. You can learn more about W-2 and how it’s different from 1099-MISC (for independent contractors) here.
- State taxes. Many states also have a state withholding form — find your state here to access the required form.
Businesses should hang on to their employment tax records for six years ( or longer in some cases ) to support their use tax filings. Having a beneficial organization set up helps you stay organized so you can track your occupation ’ s health over meter, prepare your tax returns and other fiscal statements, keep track of deductibles, etc .
3. Define the role you’re hiring for.
If you don ’ deoxythymidine monophosphate know what you ’ ra looking for, how do you know when you find it ? Before you start the process of how to hire employees, calculate out what kind of support you need. Make a list of the most crucial tasks you need help with. Is it person to help with armory management, e-mail selling, or bread baking ?
adjacent, think about what responsibilities you ’ d like the person in this position to take on in the future. Deciding how much to pay your new employee depends on the kind of sour you need done, the role ’ second longevity, and your budget .
ultimately, think about what kind of background and skillset would best serve this function and how much experience is needed .
once you ’ ve done this legwork, you ’ re ready to write a subcontract description. A clear, thoughtful job description helps you hire the properly person. Run your draft through Textio, a machine-learning platform that flags gender-biased words and jargoon, to help you write a more effective job posting and find the best hires .
Ask your best employees if they know anyone who might be a good equip for the function. Referrals save you time because they ’ ra already vouched for and can keep you from having to sort through a mountain of resumes .
however, because people tend to associate with others like them, relying on staff referrals can make for a less diverse workplace. This international relations and security network ’ t fair about being politically correct. Having a more divers work force is better for your clientele. In fact, studies show racially diverse teams outperform non-diverse ones by 35 percentage. additionally, 57 percentage of employees feel their companies should be more divers .
To find highly qualified, divers candidates, cast a wide net. Post your job description to subcontract sites like indeed, Craigslist, or LinkedIn. Include a instruction at the bottomland of the mail that identifies your business as an peer Opportunity Employer, saying that modify candidates of all genders, ethnicities, races, sexual orientations, etc. and those with disabilities are powerfully encouraged to apply. Instagram is besides a big identify for job postings .
Consider subterfuge recruitment, hiding applicants ’ names — and potentially even department of education — and years of experience to overcome unconscious mind bias and advertise greater workplace diverseness .
5. Conduct interviews.
You should try to have at least a couple of employees interview the candidates, if potential. Each person who works at your clientele will approach the interview with different goals, giving you a more balance assessment .
If you run a larger commercial enterprise, you might think about running consultation panels where each interviewer is asked to focus on a specific sphere during the interview. In that position, one person might focus on teamwork, while another looks for technical skills. The benefit of this approach is twofold — you get an judgment of a candidate ’ s identical specific skills and your employees feel like they are a separate of the process.
once you know who is interviewing your candidates, you need to think about what everyone is going to ask. You ’ ll need to go through their work history to make sure they ’ rhenium qualified, but you ’ ll besides want to ask questions that give you an idea of how they ’ vitamin d interact with the rest of your staff and your customers .
How do they approach problem solving ? What ’ s a specific exemplar of how they ’ ve solved a work problem in the past ? How full are they under coerce ? If a customer is dissatisfied or angry, how would they handle that situation ? ( Read our full moon fuse on interview questions ) .
6. Run a background check.
once you ’ ve chosen a campaigner for the function and made an offer, you might want to run a background check. besides known as a pre-employment screen, it ’ s a backdrop check is an crucial step to help keep your business, employees, and customers safe. ( This is how to hire employees who are who they say they are. ) Applicants must constantly authorize your business to run a background check .
Be aware that there are complex legal requirements and restrictions on backdrop checks, many of which vary by state. Some states restrict the types of criminal history inquiries you can pull and when in the application process you can inquire about a condemnable history, while others require that a character touch specific requirements if you are going to pull a credit history. ( Some states and cities ban employers from asking about criminal history on job applications altogether ). To comply with all of these requirements, businesses normally use a third-party agency to conduct background checks .
There are besides regulations on how you can use the data from a background hindrance. For specific guidance or advice on background checks, confer with a legal professional .
7. Make sure they’re eligible to work in the U.S.
It ’ s your responsibility to make certain all your employees are legally allowed to work in the U.S. If you hire person who doesn ’ metric ton have the right use eligibility, you could face fines, and evening criminal penalties .
To help guard against this, here ’ s how to hire employees who are eligible to work in the U.S. :
- Before or on their first day on the job, your new employee needs to fill out section one of Form I-9, which includes their contact information, Social Security number, and employment eligibility.
- By their third day on the job, they need to show you valid documentation with their ID and employment authorization. This can be one document from List A (such as a U.S. passport or Permanent Resident Card), or one ID from List B (like a U.S. driver’s license) combined with another from List C (such as a Social Security card).
- In most cases, filling out the Form I-9 and reviewing the supporting documents is enough. But if you do business in certain states, you may be required to enroll in the E-Verify program. Find out more here.
- Employers don’t need to send Form I-9 to the federal government, but you do need to keep it on file for three years after the hire date, or for a year after the employee stops working for you, whichever comes later. You can learn more about Form I-9 from U.S. Citizenship and Immigration Services.
After you hire employees
8. Report your new hires to your state employment agency.
You need to report newly hired and rehired employees to your state ’ second department of labor agency. For more information on your express ’ south requirements, check out the SBA ’ s New Hire Reporting Requirements .
9. Obtain workers’ compensation insurance.
Workers ’ compensation indemnity requirements for employers vary from state to state. Most states require employers to obtain an indemnity policy for workers who are injured or become ill due to a workplace exposure. Be sure to review your express ’ mho requirements and find a policy that suits your commercial enterprise. The National Federation of Independent Businesses ( NFIB ) has a helpful guide .
10. Go through the full onboarding process.
Find a full checklist for onboarding distant and in-person employees here, including :
- Add your employee to internal systems
- Complete new hire paperwork
- Share your employee handbook
- Provide necessary tools
- Start a shadow program
- Send a reference guide
11. Choose a payroll method.
After you hire your first employee, you need to set up a arrangement to pay them and take care of payroll taxes. You can do payroll yourself, through an accountant, or through a payroll service .
many people choose a payroll service to save clock time and avoid dealing with all the complications surrounding payroll ( like taxes ). Some payroll services besides offer integration with your policy provider and take care of new-hire coverage, which helps remove those headaches .
But even if you choose to use a payroll service ( or outsource payroll to an accountant ), it ’ south good to be familiar with the basics of how it works. There are three parts to payroll : paying employees, paying payroll taxes ( to the IRS and your country ’ sulfur tax means ), and filing tax forms .
Paying employees includes everything from tracking hours worked to calculating tax withholdings and sending checks. Payroll taxes and filings are tasks that normally must be completed every month and quarter, depending on the size of your clientele .
If you ’ ra hiring outside employees, here ’ s a promptly steer on how to get start managing payroll and taxes across multiple states.
12. Display workplace posters.
The Department of Labor requires that employers post certain notices in their workplace to inform employees of their rights and your responsibilities as an employer. These posters are provided free of commission. Some states have workplace poster requirements that you must follow in addition to the federal requirements. Visit the SBA ’ s Workplace Posters for specific federal and state posters you need for your business .
Bringing on new workers should be a cinch now that read this checklist on how to hire employees. For more data on maintaining a carnival and condom workplace, minimal engage requirements, providing employee benefits, and keeping employees informed about workplace policies, check out these resources .
As with all our articles, this contented contains cosmopolitan information and guidance only, and is not a substitute for legal or tax advice. For advice specific to your area or occupation, be surely to consult with a qualified professional .