3 Things To Do When Hiring a New Employee

Hiring a new employee to work for you can be exciting and overwhelming. There are many different things you need to make sure you cover to protect yourself as well as make their onboarding process enjoyable. The best thing to do is stay organized and have a system down for all new employees that you bring on. This will save you time and money in the long run.

Run a Background Check

One of the first things you will want to do is find a background check company that you can use to run a check on your new employee. Normally this will cover any federal and state issues that the person may have had. You may also want to do a drug screening test as well. Once you know their record it is up to you to decide if you want them to work for you or not. Depending on their past, it could be a safety issue to have the employee working for you. It is important to make sure they are going to be reliable, trustworthy, and follow all the rules.

Give Them New Hire Paperwork

There are a lot of forms that need to be completed when you hire someone. Some examples include an I9, direct deposit form, and W4. Before you can pay someone or even have them start work, these need to be complete. Many employers keep a packet on file for all new workers. That way they don't miss anything and can keep themselves organized. Be sure to save all paperwork for that employee in case there is ever an issue in the future.

Start Training

Once your new employee has passed their background check and completed the paperwork they are ready to start training. Training is one of the most important things a new employer can do for their employee. In order to get the best return on your investment, you need to give your workers all the tools and knowledge they will need to complete the job correctly. The training period should last as long as needed to retain the information. After the employee has completed his or her training they will be ready to start working for you.

All of these things are just a few important steps in the onboarding process. You can add anything else that you feel is important, just always make sure to protect yourself and take care of your people.

Hiring Your First Employee: A Guide

One of the most significant milestones for any start-up business is the day you hire your very first employee. Larger businesses often have a dedicated HR professional or department who manages the process of onboarding new staff, but this is your first employee, so it’s unlikely you have anyone with that kind of knowledge. There are some key steps to follow when hiring and managing your employees to protect both your company and the employee. If you are about to take on your first employee, these points will help you to make sure you’re compliant with local, state and federal employment regulations.

Employee Identification Number

The IRS needs to assign your business a unique 9-digit Employee Identification Number (EIN). This keeps a record of your business entity as legally allowed to employ people. You can get this number by applying on the IRS website, over the phone, or by submitting a written application by mail or fax.

Check work eligibility for each employee

You need to check that your new employee is legally able to work in the US. You will not need to submit a form to the government, but you should complete IRS Form I-9 to satisfy U.S. Citizenship and Immigration Services (USCIS). On the final page of the form, you will find what the list of documentation new employees must present to you, their employer, to verify they are authorized to work in the US whether they are a citizen or not.

Meet tax reporting standards (state and federal)

The amount of unemployment tax you pay will depend on whether your workers are independent contractors or employees. For example, independent contractors are responsible for filing and paying their own taxes and Social Security but you will need to pay taxes to the Federal government. If you are employing full or part-time staff, you will be responsible for withholding specific taxes depending on how many allowances the employee is entitled to. You can find out more in the Employer’s Tax Guide by the IRS.

Tell your state’s directory

The Personal Responsibility and Work Opportunity Reconciliation Act stipulates that all employers have to report new-hire data to their state’s directory. Usually, this should happen within 20 days of the hiring date but there are exceptions to this in some states.  

Get workers’ compensation insurance

You need to ensure you have adequate workers compensation insurance to protect both your employees and your business should an employee be injured, develop an illness or die in the course of their work duties. The insurance is there to support the employee and prevent businesses from being financially liable for their medical expenses and lost income.

Display worker’s rights on the premises

Most employers in nearly all states are required by law to display the most up to date information relating to state and federal workers’ rights. This could be done by displaying posters in common areas of the business where everyone has the opportunity to see them. To find out which posters you are required to display you should consult the U.S. Department of Labor’s Poster Advisor page.