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. 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. Therefore, you should look for the right individuals that will carry out all the activities of the business satisfactorily. The hiring process can be challenging, especially if you are a first-time employer. 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!
In a sole proprietorship, filing taxes is not usually an issue, but if you decide to hire an employee, you should know that your tax obligations will change. For that reason, before you hire your first employee, you should ensure that your business is tax-ready. The IRS requires every employer to withhold and remit taxes from every full-time employee in their organization. If you want to make your business tax-ready, you should start by getting an Employer Identification Number(EIN). Read more here about the process of getting an EIN for your business. 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.
Know the role that you need to fill in your business. Examine the activities of your business to know the role that you need to fill. Based on the role, you will know the qualifications to expect 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. Check the revenue stream and the nature of work before deciding on the salary for the employee. Now that you are ready to hire, you should ensure that you advertise 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 job site, there are risks and dangers. As the employer, you will be liable for the damages sustained by the employees. To avoid the liability, you should have workers’ compensation insurance. In many states, every employer with at least three employees must have workers’ compensation insurance. In this site, you will learn the factors to consider before buying workers’ compensation insurance policy.
More reading: official site