Understanding the Hiring Process
There’s a right and a wrong way to do practically everything, including hiring employees. It’s crucial to understand the requirements in your area so you can hire employees the right away and avoid running into legal problems. Here are a few of the things you must do before you start interviewing job hunters for an available position with your company.
Get an EIN Number
Before you can legally hire anyone, you need to get an employer identification number for your business. This nine-digit business identification number is assigned to you by the IRS and gives you the ability to legally hire employees. Visit the IRS website to fill out and submit an application for an EIN number. You can also apply by telephone, mail or fax. Your state tax agency may also require you to have an employer identification number.
Federal and state governments require employers to pay state unemployment compensation taxes. The amount of taxes you need to pay depend on the number of employees you have and whether they are classified as employees, freelancers, independent contractors or, consultants. Look at the Employer’s Tax Guide and Employer’s Supplemental Tax Guide on the IRS website to determine how much you need to withhold for taxes.
Get Insurance Coverage
As an employer, you’re required to take measures to provide your employees with a safe work environment. Familiarize yourself with Occupational Safety and Health Administration regulations and make sure your workplace conforms to OSHA standards. You’ll also need to purchase workers compensation insurance coverage. When a workers comp lawyer files an injury case, they will investigate a company’s legality for hiring employees.
Additional Employer Responsibilities
As an employer, you’re responsible to verify employee work eligibility. Have employees fill out required forms, set up a payroll system, and report new hires to your state’s reporting agency. You’ll also need to set up personnel files, implement an employee safety training program, and create an employee handbook as well as any benefit programs you want to offer. Decide and take care of all these matters before you post any available job openings online.