Things to Know Before Hiring Your First Employee
Entrepreneurship is a perfect way that you can increase your monthly income. A business is a capital extensive investment regardless of the scale of operation. As soon as the business is ready to start its operations, you should avail all the resources that you will need in the course of its operations. Every business owner understands the value of a qualified workforce. Therefore, you should look for the right individuals that will carry out all the activities of the business satisfactorily. The hiring process can be challenging, especially if you are a first-time employer. Most first-time employers usually end up with the wrong candidate because of the excitement. In this article, you will learn the things you need to hire know before hiring your first employee.
In a sole proprietorship, filing taxes is not usually an issue, but if you decide to hire an employee, you should know that your tax obligations will change. For that reason, before you hire your first employee, you should ensure that your business is tax-ready. According to the Internal Revenue Service, every full-time employee must pay taxes through the employer. One step to take to make your business tax-ready is getting an Employer Identification Number (EIN) from the IRS. In this website, you will discover more about the means of getting EIN. Besides, you should pay state unemployment taxes apart from federal taxes. Research on the tax codes to avoid making errors when filing your business taxes.
Know the role that you need to fill in your business. The most suitable approach to knowing the role to fill is examining your business operations and activities. The tasks available will help in determining the qualification to check when hiring a suitable candidate. Create a vivid job description to ensure that you receive applications from the right individuals. Also, you will be required to decide on the salaries. Examine your business profits to know the right amount to offer to the employee. Now that you are ready to hire, you should ensure that you advertise the position. Digital advertising platforms such as online job search website and LinkedIn will help in finding the right talent.
In every job site, there are risks and dangers. In the event of an accident, you will be liable for the damages that will be incurred by your employees. It, therefore, explains the need for workers’ compensation insurance. A workers’ compensation insurance is a mandatory requirement if you have more than 2 employees. In this site, you will learn the factors to consider before buying workers’ compensation insurance policy.