If you are hiring your first employee, you must file documents with and pay taxes to various government agencies.
If you ‘re hiring your foremost employee, congratulations ! It ‘s significant to start off on the proper foot as an employer by making indisputable you follow all of the legal rules that immediately apply to you. From tax forms to government registrations to policy requirements and more, being an employer carries a number of new obligations. You ‘ll find our disturbance list for newly employers below .
1. Obtain an employer identification number.
When you hire employees, you must get an employer designation number ( EIN ) to use on tax returns and other documents you submit to the IRS. To get an EIN, you must file IRS Form SS-4. You can download the form from the IRS web site at www.irs.gov .
2. Register with your state’s labor department.
once you bring on employees, you will have to pay country unemployment compensation taxes. These payments go to your state ‘s unemployment recompense fund, which provides short-run respite to workers wholose their jobs. Go to the Department of Labor ‘s web site for a list of country unemployment indemnity tax agencies.
3. Get workers’ compensation insurance.
You should have workers ‘ comprehensive examination coverage to protect workers who might suffer on-the-job injuries. Workers ‘ comprehensive examination insurance is required in the huge majority of states, although some make an exception for identical modest employers. For more information on workers ‘ compensation laws, see The Manager ‘s Legal Handbook, by Lisa Guerin and Amy DelPo ( Nolo ) .
4. Set up a payroll system to withhold taxes.
You ‘ll need to withhold a assign of each employee ‘s income and deposit it with the IRS, and besides make social Security and Medicare tax payments to the IRS. For more information, get IRS Publication 15, Circular E, Employer ‘s Tax Guide from the IRS web site at www.irs.gov. ( You may besides have to withhold taxes for your department of state. For more information, check with your state ‘s tax agency ; you can find links to each country ‘s representation at the web site of the Federation of Tax Administrators at www.taxadmin.org/state-tax-agencies. )
5. Have each employee fill out IRS Form W-4, Withholding Allowance Certificate.
On the W-4 form, employees tell you how many allowances they are claiming for tax purposes, so that you can withhold the correct amount of tax from their paychecks. ( You do n’t have to file the form with the IRS. ) You can find this form at www.irs.gov. You should ask employees to fill out a new W-4 shape each class if they want to change their allowances .
6. Fill out Form I-9, Employment Eligibility Verification for each new employee.
U.S. Citizenship and Immigration Services ( USCIS, once known as the INS ) requires employers to use this form to verify that every employee they hire is eligible to work in the United States. ( You do n’t have to file this human body with the USCIS, but you must keep it in your files for three years and make it available for inspection by officials of Immigration and Customs Enforcement, known as ICE. ) You can obtain the form on-line at www.uscis.gov. note that these filled out forms should be kept in a separate I-9 booklet for all employees — not in each employee ‘s personnel file.
7. Report each new employee to your state’s new hire reporting agency.
The new rent report broadcast requires employers to report information on all new employees for the function of locating parents who owe child digest. Each state has a unlike fresh lease coverage representation. To find the name and address of your submit ‘s new hire report agency, see the State New Hire Reporting page at the Administration for Children & Families website ( www.acf.hhs.gov ) .
8. Post required notices.
several government agencies require employers to post notices providing information on worker rights for their employees. For information on required federal posters, go to the Department of Labor website at www.dol.gov/elaws/posters.htm. The DOL ‘s “ Poster Advisor ” will help you determine which posters you must display in your workplace. In accession, you must comply with your state department of labor movement ‘s poster requirements. A list of submit departments of labor is included on the union Department of Labor ‘s web site .
9. File IRS Form 940 each year.
You must file IRS Form 940 to report your federal unemployment tax for any year in which you paid wages of $ 1,500 or more in any quarter or for any class in which an employee worked for you in any 20 or more different weeks of the year. You can find the form at www.irs.gov .
10. Adopt workplace safety measures.
about every employer must comply with the requirements of the Occupational Safety and Health Act ( OSHA ) by, among other things, providing a workplace free of hazards, training employees to do their jobs safely, notifying government administrators about unplayful workplace accidents, and keeping detailed safety records. For information on these rules, go to website of the Occupational Safety and Health Administration at www.osha.gov.
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11. Create an employee handbook.
Although not required, it is an excellent idea to have a handbook describing your clientele ‘s employee policies and making it clear that use is at will unless an employee has signed a written employment contract. A capital resource is Create Your Own Employee Handbook : A Legal & Practical Guide, by Lisa Guerin and Amy DelPo ( Nolo ) .
12. Set up personnel files.
For each employee you hire, create a file in which to keep job-related documents, such as job applications, employment offers, IRS Form W-4, performance evaluations, and sign-up forms for employee benefits. checkup records should be kept in a separate, confidential file, in a lock cabinet. And you should store I-9 Forms, which document an employee ‘s immigration status, in a separate file a well. For more information on developing a system for storing and maintaining personnel records, including state-by-state rules about employee access to their files, see The Employer ‘s Legal Handbook, by Fred Steingold ( Nolo ) .
13. Set up employee benefits.
If your business has established employee benefit programs such as health policy or a 401 ( k ) design, you ‘ll need a sign-up procedure so employees can enroll, name their dependents, and choice options .