Before hiring employees, make sure you get your ducks in a row. Start by following these hiring tips:<\/p>\n\n\n
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<\/figure>\n<\/div>\n\n\nGet a handle on your finances<\/strong>: Review past P&L Statements<\/a> and income statements<\/a> to ensure you\u2019re financially ready to start the employee hiring process. If your business can\u2019t commit to a full-time employee salary, consider hiring independent contractors, part-time employees, seasonal workers, or interns.<\/p>\n\n\n\n (Read up on tips for hiring an independent contractor vs. employee<\/a>.)<\/p>\n\n\n\n Apply for an Employer Identification Number and register in your state: <\/strong>First, ensure your business has an Employer Identification Number (EIN)<\/a>. This number goes hand in hand with filing your small business taxes<\/a>. You can apply through the Internal Revenue Service (IRS) website<\/a>.<\/p>\n\n\n\n Then, make sure your business is state-registered. States may require you to register separately for an identification number. (In some states, it\u2019s called an Employer Account Number or EAN.) Head to your state’s Department of Revenue website for specific state information.<\/p>\n\n\n\n Determine business gaps<\/strong>: Determine where talent gaps exist and what kind of support you need from a potential candidate. Make a list of the most needed tasks. For instance, is your trouble area marketing and promotions or manual labor? Write down a complete list to visualize and plan for what\u2019s next.<\/p>\n\n\n\n Write a job description:<\/strong> Create a detailed job requisition. The job description should articulate your company overview and culture, job responsibilities, required years of experience, desired skills, and employment screening requirements. It should also contain an Equal Employment Opportunity (EEO) statement and share job location or terms, education and other certification requirements, employee benefits, and salary range. Be articulate and thorough to ensure you attract the right employee to fill the talent gaps in your company. <\/p>\n\n\n\n Determining employee pay:<\/strong> Including your future employee\u2019s title, organizational level, and pay upfront will help both sides come to the interview table prepared. If you’re an S Corp, you may already have experience determining reasonable compensation<\/a> for yourself. But if this is your first external employee hire, it’s normal to feel a little nervous about setting pay ranges. As you consider the value of this new employee, make sure their salary or hourly rate aligns with the work you need to be done, the role\u2019s seniority, and your available budget. Remember, at the end of the day, a good employee should increase your business’s ability to create revenue and bring in customers.<\/p>\n\n\n\n Research worker’s compensation insurance<\/strong>: Workers’ compensation insurance protects your business in case an employee gets injured on the job.<\/span> Workers compensation insurance has different requirements based on the state your business is in. For example, in Wisconsin, you need worker\u2019s compensation insurance if you employ three or more part- or full-time employees. The same holds if you pay a combined $500 or more in gross wages within any calendar quarter as a Wisconsin business. You can purchase worker\u2019s compensation insurance from several private insurers. Check with your local state agency, board, or commission to confirm the guidelines in your area. <\/p>\n\n\n\n Research state and federal Department of Labor laws:<\/strong> In addition to federal labor laws you must adhere to as an employer, each state has nuanced laws to abide by. As a business owner, you must stay current on existing and future guidelines employers must follow. It’s a good idea to educate yourself on what departments and groups are responsible for enacting and enforcing these rules.<\/p>\n\n\n\n Cross paychecks off your small business to-do list<\/p> After you do the preliminary work, now it\u2019s time to find employees, interview them, and select the perfect candidate.<\/p>\n\n\n\n Post the job opening: <\/strong>If you\u2019re wondering where to find employees for small business, follow along. Start by looking within your network. Find candidates through connections and employee referrals. Ask your friends, fellow business owners, and family if they know anyone who would fit the job requisition when hiring employees. You can also post the job in the following places:<\/p>\n\n\n\n Review applications and select candidates to interview:<\/strong> If all goes your way, you\u2019ll receive applications from many candidates. Take time to review candidates’ backgrounds to ensure they meet the job expectations when hiring employees. You can also narrow the pool of applicants with pre-screening or pre-employment tests. This can help measure the knowledge an applicant needs for the tasks.<\/p>\n\n\n\n Set up interviews:<\/strong> Conduct interviews. Before the interview, ensure you’ve built a strong list of questions to ask each interviewee. During the interview, review their qualifications and experience. Don’t forget to ask behavioral questions to identify how they\u2019d handle future situations.<\/p>\n\n\n\n Run a background check:<\/strong> Background checks can vet a future employee\u2019s criminal and driving record. Before you pull the check when you are ready to hire an employee, refer to local and state labor laws.<\/p>\n\n\n\n Extend and offer:<\/strong> After considering each candidate\u2019s character, core values, experience, and education, extend a job offer to the right candidate. Many employers choose to make their employee hire official over the phone, followed by an email that includes these details ( provided in alphabetical order):<\/p>\n\n\n\n It is standard practice to notify interviewees who didn\u2019t get the position that the position has been filled. It is also a good idea to pull or close the job position if you have listings on your website or other job resource boards. Maintaining respectful and professional lines of communication as an employer can help you in the long run. You never know when a previous candidate might be the perfect fit for a future role.<\/p>\n\n\n\n After the new hire offer is accepted, there are a few more essential steps to consider as a part of employee onboarding.<\/p>\n\n\n\n Complete Form I-9:<\/strong> Once the offer is accepted, have the new employee complete and return an I-9 form to confirm U.S. work eligibility.<\/p>\n\n\n\n Complete Form W-4:<\/strong> When the employee starts, request they complete Form W-4, Employee\u2019s Withholding Certificate, so that you can withhold the correct amount of taxes from the employee\u2019s pay.<\/p>\n\n\n\n Show the new employee the ropes:<\/strong> Ready for the employee\u2019s first day? It takes prep work not only on the employee\u2019s end but also on the business end! Make sure the new employee receives suitable materials to feel comfortable in their new role:<\/p>\n\n\n\n Post workplace posters:<\/strong> The Department of Labor updates labor law posters \u2013 post them to comply with federal requirements. Post any applicable state posters as well.<\/p>\n\n\n\n Report new hires to the <\/strong>state division of employment: The process varies from state to state, but generally, you\u2019ll need to report new hires to the state for payroll and unemployment tax purposes. Report the business\u2019s EIN\/EAN, name, and contact information. Additionally, report the employee\u2019s name, Social Security number, address, and start date.<\/p>\n\n\n\n Set up your employee’s new taxes:<\/strong> As part of your payroll and tax duties, you must deposit federal income taxes you withhold from your employees\u2019 pay, as well as the employer and employee portions of Social Security and Medicare taxes. You should make these federal tax deposits electronically.<\/p>\n\n\n\n Have your employees fill out a Form W-4 to indicate their withholding preferences. They should also fill out a state income tax form to indicate withholdings.<\/p>\n\n\n\n Quarterly returns:<\/strong> You\u2019ll also need to file Form 941<\/a>, Employer\u2019s Quarterly Federal Tax Return, with the IRS for every quarter you pay wages subject to income tax withholding (including withholding on sick pay and supplemental unemployment benefits), or Social Security and Medicare taxes. That\u2019s unless you get a notification from the IRS saying you can file a Form 944, Employer\u2019s Annual Federal Tax Return.<\/p>\n\n\n\n Pay Federal Unemployment Tax (FUTA):<\/strong> Only the employer pays FUTA<\/a>; it isn\u2019t withheld from employees\u2019 wages.<\/p>\n\n\n\n Pay local and state taxes:<\/strong> In addition to all the federal requirements, you must follow regulations from each state and locality whose residents you employ, including withholding for local and state taxes where applicable. Local and state tax requirements are usually similar to federal requirements. However, states and municipalities can modify their requirements, so it\u2019s critical to learn the local and state requirements that may apply to you after hiring employees.<\/p>\n\n\n\n Set up payroll: <\/strong>Payroll automation can reduce processing costs and human errors. Need hands-on support? At Block Advisors, our payroll professionals make it easy to hand off your payroll tasks and ensure tax filings are a breeze. Learn more about our <\/a>payroll services<\/a>.<\/p>\n\n\n\n If you\u2019re a sole proprietor, the prospect of getting extra help on your business is exciting! As you shift from sole proprietor to employer, it’s common to feel overwhelmed, too. However, don’t worry. If you want to know how to hire employees as a sole proprietor, reference the above process. You’ll usually need to follow the same instructions to hire employees listed above.<\/p>\n\n\n\n Whether you\u2019re hiring your first employee or fifth, hiring decisions are among the most critical you\u2019ll make for your business.<\/p>\n\n\n\n If hiring employees is on your to-do list, make sure your next step is to get help from Block Advisors for small business tax<\/a>, bookkeeping services<\/a>, and employer payroll<\/a> responsibilities. Our experts are equipped with expertise and technology to give you peace of mind so you can get back to working on the parts of your business you love most.<\/p>\n\n\n\n See how we can help with your payroll needs and answer your payroll questions.<\/p>\n\n\n\n Schedule a free payroll consultation today<\/a>.<\/p>\n\n\n\nPayroll services made simple<\/h3>
<\/a>How to find employees \u2013 and more steps in the interview process<\/h2>\n\n\n\n
Where to find employees<\/h3>\n\n\n\n
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How to hire workers<\/h3>\n\n\n\n
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<\/a>Next steps after hiring employees<\/h2>\n\n\n\n
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<\/a>How to hire employees as a sole proprietor<\/h3>\n\n\n\n
Get help making employee hiring and other decisions for your small business.<\/h2>\n\n\n\n
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