Hiring Your Own Employees

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Aug 12 2017
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As a small business owner, one of your new tasks will be to hire employees to help you run your company. If you haven’t done this before, you may be wondering what responsibilities you have as an employer. Fortunately, we’re going to go over all of the steps necessary so that you know how to hire your own employees without getting into any legal trouble. Overall, the process is rather straightforward, but there are a few things you have to do first.


Obtain an EIN Number

When filing for your business entity, you should have gotten a federal Tax ID from the government. This is what the IRS uses to identify your company, and it will enable you to hire staff legally.


If you don’t know how to get an EIN, then go to http://www.govdocfiling.com and fill out the paperwork online. You can submit the documents along with your payment and get your number within a few hours.

EIN Employer Identification Number - IRS Form W4

Employee Eligibility

You most likely are familiar with the I-9 form from the IRS, which verifies if a person is legally able to work in the US. As such, it’s imperative that you have this form on file so that you can have prospective staff members fill it out.


Tax Information

You can either have your workers be independent contractors or staffed employees of your company. In the case of the former, they will have to fill out a 1099 form, and they will have to pay their own taxes. As employees, however, they will complete a W4, and you will be liable for taking their taxes out.


The other side to that is that you will also have to provide a W2 form at the end of the year so that employees can file their taxes correctly. If you need help with any of that, you will most likely have to hire an accountant to assist with this process.

EIN Employer Identification Number - Tax Information

Reporting New Employees

All businesses must report new hires to their state directory within 20 days of hiring, so you have to make sure that you are on top of that. You can usually do this online, though, which makes it a lot easier.


As you can see, there are quite a few steps to take, but after you’ve hired your first employee, it will become infinitely easier with each subsequent hire.

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