HOW TO HIRE YOUR FIRST Hired Employee
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A crucial turning point for each firm is hiring its first workers.
1.Ensure That You Are Qualified Before you hire up Staff
If your business is thriving and you’re having to turn down work, if you’re expecting a new product or service offering to boost your revenue, or if you require a unique skill set outside of your wheelhouse, take a risk and begin interviewing qualified people.
Simply because you need the assistance, do not rush the process and hire the first individual you interview. In the end, making hasty decisions can result in hiring the wrong people, which increases your workload.
Assess if you can afford to hire an employee.
When you’ve got enough money saved to pay for the costs of recruiting a new employee, you should decide whether you have sufficient money in your budget to support that position.
The most obvious expense associated with employing a new employee is paying salaries, but it’s not the only one. This is particularly crucial when it comes to employing your first employee. You will need to start taking care of things like paying payroll taxes and taking care of workers’ compensation. You must budget for any overhead expenditures, such as acquiring work equipment or investing in training resources.
You need to do the following cost calculations before you start posting jobs on job boards:
Recruitment, Onboarding, Training, Payroll, and Benefits
2. Comply with the Legal Hiring Requirements
Here are some legal requirements you should research before hiring employees:
1. Get an EIN- EMPLOYER IDENTIFICATION NUMBER.
2. Register with the labor department in your state.
3. Obtain workers’ compensation insurance.
4. Establish a payroll system to withhold taxes.
GET AN EIN- EMPLOYER IDENTIFICATION NUMBER
A Federal Tax Identification Number EIN is used to identify a company organization and is also known as an Employer Identification Number EIN. It is like the social security number for the business, is used for tax purposes, and is needed to hire employees. Generally, businesses need an EIN. You may apply for an EIN online. This is a totally free service offered by the Internal Revenue Service and you can get your EIN immediately. Visit www. IRS.GOV.
REGISTER WITH YOUR STATE’S LABOR DEPARTMENT
You will have to pay state unemployment taxes. These taxes will be directed to your state’s unemployment compensation fund, which provides social assistance to workers who lose their jobs. To give an example, the United States Department of Labor states that corporations must pay both state and federal unemployment taxes if they employ at least one person for 20 weeks in a calendar year or if their employees’ wages exceed $1,500 per quarter. Your company will first register with the state unemployment insurance office, then record your employees’ quarterly wages and pay quarterly unemployment taxes online. If your state does not require state tax returns, you will most likely be required to register your business with the unemployment office. Verify the requirements in your particular state.
OBTAIN WORKERS COMPENSATION INSURANCE
Most states require employers to undertake workers’ compensation insurance in the event that an employee is injured on the job. This insurance will cover the injured worker’s medical expenses and lost wages. It is critical to research your state’s requirements in order to obtain the appropriate amount of coverage.
ESTABLISH A PAYROLL SYSTEM TO WITHHOLD TAXES.
You can and should withhold a portion of each employee’s wages to pay federal and state taxes, including Medicare and Social Security. Third-party payroll systems can assist you in determining how much is deducted from each paycheck and how these funds can be allocated to taxes and employee benefits.
3. CREATE A GOOD JOB DESCRIPTION
Your job description should be as detailed and aligned with the actual job as possible. The goal is to find someone (an employee) who knows upfront what they are getting themselves into and chooses to apply based on that. Write a precise and clear job title, and a comprehensive job description, and be as open and honest as you can in your job posting to make sure ideal candidates can find it and will want to apply.
Potential employees want to know if they are suitable for the position in order to avoid wasting their time. The next thing they’ll want to know is what you can offer them, so be sure to include details like your salary, insurance coverage, and job description.
Lastly, you can provide information about your business. Keep in mind that this is your opportunity to impress the job candidate. The job interview is their chance to show what they can offer you.
The following should be taken into account when developing a job description:
- Simply write for rapid reading.
- Jargon should not be used.
- Specify the position’s responsibilities in detail.
- Provide details about the work type.
- To avoid bias, use simple and clear language.
4. POST AND MONITOR YOUR JOB ADVERTISEMENT
Gaining the attention of qualified candidates requires your ads to be visible and attractive. You can publish job advertisements on multiple websites, then promote and monitor them. You can also physically post your job listing at local establishments.
If you desire skill base applicants, you can publish your job on any of the following famous recruitment websites: LinkedIn, ZipRecruiter, Indeed, or Google Jobs.
5. SCREENING AND INTERVIEWING APPLICANTS
Screening and interviews are used to establish whether or not a candidate is qualified for a position. By simply reviewing a candidate’s résumé, cover letter, or CV for experience, qualifications, and professionalism, you may quickly sift through the many applications you’ll receive.
ASSESSING REQUIRED DOCUMENTS: RÉSUMÉ, COVER LETTER, AND CV
Start by looking over submitted resumes and cover letters for formatting issues, employment gaps, spelling and grammar mistakes, and any inconsistent information. These small details can suggest that the applicant is mass-applying for jobs, is not paying attention to detail, has weak writing abilities, or is making up information.
However, keep in mind to exercise some grace throughout the hiring process to help you avoid excluding qualified individuals who might struggle with learning disabilities, non-native English speakers, or other persons who need little adjustments to be successful in the position you’re looking for.
- MAKE YOUR FIRST HIRE
Once you’re through with the screening process and you’ve decided on who to hire, send out rejection letters to the applicants who didn’t make the cut. Now it’s time to start sending offers. Some of the documents which are usually required are:
- Name
- Job title
- Pay rate
- Duties
- Job classification
- Schedule
Have each employee submit IRS Form W-4.
Employees fill out the W-4 form to notify you how many allowances they are claiming for tax purposes, so you may withhold the appropriate amount of tax from their paychecks.
Check your candidates’ employment eligibility.
Before you can formally recruit a new employee, you must first verify their identity using the I-9 form from US Citizenship and Immigration Services. Your prospective employee will supply identifying information such as their social security number and citizenship status, as well as copies of appropriate documents proving their identity. It is up to you or your HR team to confirm the authenticity of these documents. Each of these I-9 papers should be kept for at least three years after the employee is recruited.
Each new employee should be reported to your state’s new hiring reporting agency.
Employers are required to disclose information on all new employees under the new hire reporting program in order to locate parents who owe child support. Each state has its own new-hire reporting organization.
Write an employee manual/handbook
It is a good idea to have a handbook outlining the personnel regulations, code of conduct, and policies of your company and making it clear that employment is at-will unless a valid employment contract has been signed.