Your business is taking off. You have a small team of just yourself and a few colleagues. You can manage, but it feels like if you don’t do something quick your business will suffer.
You know you need employees but have never hired them before. There is a lot that goes into it you think. You don’t know if you’re ready.
If you’re wondering how to hire an employee, then look no further. Our guide will break down what you need to learn. Once completed, you will be well on your way to hiring your first employees.
1. Obtain an EIN
An EIN, Employer Identification Number, is necessary before you hire your employees. This nine-digit number is required by the federal and state. When employees do their taxes, they will punch in this EIN which points to your business.
Another way to think of the EIN is like a social security number designated for your business. To obtain an EIN, you’ll need to do some paperwork and fill out Form SS-4 through the IRS. Be aware that each state has a different process for acquiring an EIN, so do your own research according to your state’s labor department.
2. Unemployment Compensation
When you are a business, you must register with your state’s labor department. By registering, your company will pay state unemployment compensation taxes.
When an employee loses their job, they file for unemployment. The unemployment compensation taxes you pay go to a fund, thus allowing for temporary relief for the said employee.
3. Workers’ Compensation
Having workers’ compensation insurance for your employees is a definite. This is needed if someone gets sick or injured on the job. The compensation your business needs will be different depending on what state you are running your business.
Again, research the needs of your business. If you have a smaller business, you may be exempt.
4. Provide a Payroll
Your employees will need to get paid for their time. You will need to have a system in place to provide income. This can be done through an accountant or payroll service.
When you have a payroll service, it will be a breeze when your employee asks for pay stubs.
5. Bring the Right People In
When searching for the right employees, there are many factors to consider. Above all, you want to make sure it is the right fit for your team. When scouring through résumés, there are ones that will pop and stand out from the crowd.
It helps to be on the same page with your employees. See what their wants and needs are and see if you can conclude. It doesn’t hurt to ask your employees for referrals to make a quality hire.
When thinking of how to hire an employee, the more visibility to your job posting the better. You’ll want to utilize Indeed, Craigslist, Monster, and LinkedIn during the hiring process.
When conducting interviews, having the right people sit in on the job is of utmost importance. Getting different perspectives on a potential hire will bode well for you and your team.
Each person during the hiring process can focus on something specific for a smoother process. Things like technical skills, work ethic, goals are the many things to pay attention to.
Refer to Our How to Hire an Employee Guide
We hope by now you have a better understanding of how to hire an employee. Please refer to our guide if you ever need our helpful tips.
Developing the right team takes time. The hiring process can be taxing, but it doesn’t need to be.
Make it as enjoyable a process as you can. What you bring to the table will register with you bring on. For more insights and tips and the like, read through our blog.