How to Hire Employees

Your business is booming and you have reached the point where you need help. Up until now you have handled everything on your own, and you suddenly realize that you have no idea how to hire employees. If this is you, then here is what you need to know.

First, you need to have an Employer Identification Number. If you do not, then this is the first step, and you must register for it through the IRS. This is vital in reporting your with-holdings.

Next, you will need to set up a system to set up records for withholding taxes. The IRS requires at least four years of these records. You will need a system to withhold both federal and state taxes. Often, an accountant is the best resource to use to help you get this system underway.

You must verify your potential employee’s eligibility to work within the United States. You can do this through Form I-9, Employment Eligibility Verification Form. If your employee has a green card or Social Security number, then you should be in good shape.

Your state, under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, requires employers to report newly hired or re-hired employees to their state’s directory. Be sure to register with the New Hire Reporting System before you make a hire, because you only have 20 days in which to make this report once you have hired someone.

You will also need to carry Workers’ Compensation Insurance. Purchase this from a qualified insurance provider before you hire anyone. You can also use the state’s Workers’ Compensation Insurance program. Similarly, you are going to need to pay unemployment insurance taxes if your business falls within the parameters that require this. If you are required to pay unemployment insurance taxes, you will need to register with your state’s workforce agency.

Some states require disability insurance. These are California, Hawaii, New Jersey, New York, Puerto Rico, and Rhode Island. If you live in one of these, you will need to contact the Department of Labor to purchase the proper insurance.

If you do not already have employees, you need to post the required state and federal notices in your workplace somewhere that the new employees will be able to see them. Find out what these are so you can get them in place.

Finally, make sure you have checked with your accountant about the state and federal tax filing requirements that you must meet. File all of the necessary forms, and start paying the taxes on time every month. Get organized, and set up a workplace that your employees will find is healthy and fair. When you have learned all you can about how to hire employees, you will be ready to put out the ads and find the right talent for your needs.