Things to Know Before Hiring Your First Employee
Entrepreneurship is a perfect way that you can increase your monthly 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. Every business owner understands the value of a qualified workforce. It, therefore, means that every business owners should search for the right talent that will handle the business activities the right way. No doubt, hiring the first employee can be a difficult task, especially if you are new in the business world. 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. For that reason, before you hire your first employee, you should ensure that your business is tax-ready. According to the Internal Revenue Service, every full-time employee must pay taxes through the employer. 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). Also, you will be required to pay unemployment taxes. Research on the tax codes to avoid making errors when filing your business taxes.
Establish the position that you need to fill in your small business. Examine the activities of your business to know the role that you need to fill. The tasks available will help in determining the qualification to check when hiring a suitable candidate. Create a vivid job description to ensure that you receive applications from the right individuals. An important aspect that you should consider before hiring an employee is the salary. 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. The use of digital platforms such as online job sites and LinkedIn will help in finding the right candidates to fill the position.
Accidents are common in workplaces. As the employer, you will be liable for the damages sustained by the employees. For that reason, you should ensure that you have workers’ compensation insurance. A workers’ compensation insurance is a mandatory requirement if you have more than 2 employees. Read more here about the steps for getting the best workers’ compensation insurance policy.