Things to Know Before Hiring Your First Employee
Venturing in business is one way that you can boost your income. A business is a capital extensive investment regardless of the scale of operation. 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. The hiring process can be challenging, especially if you are a first-time employer. The likelihood of hiring the wrong individual to fill a position is usually high if you are not knowledgeable with the process. In this article, you will learn the things you need to hire know before hiring your first employee.
Hiring an employee means that your business will get new tax obligations which might not be necessary for sole proprietorship. Tax-readiness is crucial when hiring your first employee since you will lose your sole proprietorship rights. The IRS requires every employer to withhold and remit taxes from every full-time employee in their organization. One step to take to make your business tax-ready is getting an Employer Identification Number (EIN) from the IRS. click here to learn the steps on how to get an employer identification number (EIN). Besides, you should pay state unemployment taxes apart from federal taxes. Research on the tax codes to avoid making errors when filing your business 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. Create a vivid job description to ensure that you receive applications from the right individuals. 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. Digital advertising platforms such as online job search website and LinkedIn will help in finding the right talent.
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. To avoid the liability, you should have workers’ compensation insurance. A workers’ compensation insurance is a mandatory requirement if you have more than 2 employees. In the homepage of this website, you will read more on how to find a good workers’ compensation insurance coverage.