Legal Requirements to Fulfill Before Hiring Employees

Are you planning on hiring an employee for your business for the first time? I know, I know, we’re basically heading into a recession right now, if not already in one, but I am finding that most of my clients still seem to be thriving at the moment.

What’s weird about the current state of the economy is that there are still record job openings. I hope that your company is one of them that needs employees. I take it that’s a sign that things are favorable with your business.

But have you taken all the necessary steps to set yourself up as a lawful employer?

There are several steps required by the federal and state government that must be taken before you can hire someone.

I’m not an attorney, nor a Human Resources consultant, but here is a list 10 legal requirements every employer must do before taking on a new hire:

1. Apply for an EIN
2. Register with your state’s unemployment insurance office
3. Verify each prospective hire’s eligibility to work
4. Look into your state’s workers’ compensation insurance rules—and get coverage
5. Report new employees to state registry
6. Set up a payroll and tax withholding system
7. Have all employees fill out form W-4
8. Get and post employee notices
9. Comply with OSHA rules
10. Establish any necessary employee benefits

For more specifics, please visit this link from The Hartford.

Though these are the main steps employers must take that are required by federal or state law, there are other smart things to do before you start employing people.

These include creating an employee handbook, so there are no questions about your rules and protocols for employees (even your first hire), and creating a personnel file for every employee.

But I encourage you to not try to tackle this on your own. Consider the help of a Business Transactional Attorney, a Human Resources Consultant, a legitimate payroll provider, etc.

I can help if you need connections to any of these professionals through my large network of seasoned professionals that I know, like, and trust.

The cost to get this initiated will be less than if you try to do it on your own and end up running into roadblocks, getting dinged for penalties and fees, etc.

Yes, the economy is in a funky place at the moment, but if you’re planning on hiring, that’s a good sign that things are going well for your business.

To keep things going on a positive trajectory, make sure to use trusted professionals to get you going on the right foot and keep your focus on your passion, your business.

-JK