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You are here: Home / Employers / 6 Tips for Hiring Your First Employee

6 Tips for Hiring Your First Employee

August 12, 2015 by hremp.com Leave a Comment

Hiring Your First EmployeeSo, your business is so busy that you need to hire additional help – congratulations! This is a major milestone for a sole proprietor. However, hiring employees is both a responsibility and a commitment. Here are six key points to consider, remember and put into practice when hiring your first employee:

1. Be Aware of Tax Implications

When you hire an employee, you won’t just be responsible for their wages; you’ll also have to pay their Social Security tax, unemployment tax and Medicare tax. You may also be responsible for withholding and filing taxes on their behalf. Visit the IRS website to verify your tax responsibility, and consider having a payroll solution in place to help make these calculations for you.

2. Benefits?

While offering benefits to your staff member is not a requirement, it can be a means of inspiring both loyalty and goodwill. Consider what benefits you might offer to your new employee such as health insurance coverage, vacation time, sick days and profit sharing.

3. Insurance

Remember to also obtain workers’ compensation insurance. The cost will vary by industry, so be sure to have a sense of this figure/amount before hiring your first employee.

4. Training and Equipment Costs

How much time and resources will training entail? Be sure to have a plan – and a budget – for getting your new staff member up to speed. You may also need to purchase an additional desk, computer and other office supplies.

5. Interview Tips

Make a list of your key interview questions before starting the interview process. Generally, you should ask why the candidate wants the job, have them describe their strengths and weaknesses, talk about how they deal with conflict and where they see themselves in five years. You should also craft some questions specifically tailored to your business and the job for which they are interviewing.

6. Employment Screening

While the interview will reveal a lot about each candidate, it won’t reveal everything. Be sure to make use of a quality, professional employment screening company and an employment verification service to verify that they are all they seem (or claim) to be.

Hiring your first employee is an exciting milestone; it means that your business is growing, succeeding and well on its way to thriving. While this is a positive step, it can also be somewhat daunting. Use these six tips to educate yourself and navigate the potential pitfalls of hiring your first employee.

Disclaimer Statement: All information presented is for information purposes only and is not intended to provide professional or legal advice regarding actions to take in any situation.

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