Checklist For Hiring First Employees


Hiring first employees checklist: Hiring your first employee does turn out to be one of the founding stones of growing your business institution. Doing it the right way marks the pathway to successful professional growth for the company. Many people now keep their hiring first employee’s checklist ready in hand to make it easier to start their hiring journey. 

Hiring an employee takes more than just taking an interview. For most of you who do not know much about laws, there are a lot of legal formalities while hiring your first employee or, for instance, any other employee. 

So to make it easier for you to follow through with the process, we have created a simple step by step checklist for you to check while hiring your first employee. Read Below! 

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Checklist for hiring first employees 

1. Employer Identification Number 

Like your identification status, there is also a legal obligation for a recruiter to get an Employer Identification Number or an EIN. Only with the legal holding of an Employer Identification Number one can hire employees. 

Employer Identification Number is also famous as Employer Tax ID, which you can easily acquire by filing the IRS Form SS4. Employer Identification Number is not just used while hiring employees; it is also an essential asset while filing for tax returns and various other legal interventions, making it a first step in hiring first employees checklist.

2. Registration with the State Employment Agency 

Yes, yet another legal checklist to fill in before hiring your first employee. After obtaining a good Employer Identification Number or EIN. It is necessary for you to register as a potential employer in your state-based agencies. 

Moreover, this registration is essential to smoothly file, register and pay income tax services according to the state laws. You will also have to register your new employee with the state agency’s new hire notification system. 

All employers need to report newly hired employees to the state directory within 20 days of their employee hire date. You can see the process for each state through the U.S. Department of Health and Human Services.

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3. Verification of New Employees Eligibility 

All new employees have to verify their work eligibility by their respective business authorities. This step ensures the state-level government that the employee hired is a competent and legally safe candidate to be hired for the job role. 

This verification is done by filling out the Employee Eligibility Verification Form. The submission of this form requires proper identification proof, ID and employment authorization.

4. Worker’s Compensation Insurance 

This acts as a safety net for the businesses to save themselves on spending on any tragic workplace activities or harm that is unforeseen. Getting proper Worker’s Compensation Insurance highly depends upon the state laws. As each state has its very own different set of binding regulations.

Additionally, you can get Worker’s Compensation Insurance on a self-insured basis or through a commercial carrier or your state’s workers compensation insurance program. Each state has its very own and different program.  

5. Payroll Setup 

The next essential step is to set up a proper payroll method. Ensure that you are getting your new employee their paycheck regularly and consistently while taking care of payroll taxes. 

Moreover, most employers choose to do payroll through a payroll service provider. You’ll want to choose one that covers everything from tracking your employee’s hours, calculating tax withholdings, and sending checks.

Depending on the size of your business, things like taking care of payroll taxes and filings may only need to be completed on a monthly or quarterly basis.

6. Workplace Notices (Post) 

As an employer, one is legally required to display posters in your office or workplace that educate your employees about their rights and responsibilities under labour laws. You can get more details about the requirement of signs in your area from the U.S. Department of Labor.

7. Offering Employee Benefits 

Finally, you’ll want to make a plan for offering employee benefits. As a small employer, you may not think you have the budget to provide a competitive benefits package. Thankfully, a health benefits plan is explicitly for small employers or small business HRA.

Through a QSEHRA, you set a monthly allowance for your employees’ reimbursement for qualified medical expenses and individual insurance premiums. You only reimburse employees for their costs, so any unused funds at the end of the year stay with you.

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