Employers: Steps to hiring employees
Once your business starts to grow you will need help in making sure you manage all aspects of it. The worse thing to encounter as a client is a disorganized business. In order for everything to function and fall in its proper place; you must organize yourself and your business. Sometimes this means hiring an extra set of hands. When hiring employees you must keep in mind that there are Federal and State regulations that must be followed. Your business should always remain in compliance with these regulations in order to avoid costly penalties.
Here is a quick list of some of the things you will need to know.
1. Obtain an Employer Identification Number (EIN); Employer Tax ID provided by the Internal Revenue Service. Before requesting your Employer Identification Number, you must already have determined what type of legal structure you are establishing (Sole Proprietor, Partnership, Corporations, Limited Liability Company, Estate or Trust)
2. Set up your system for record keeping. According to the IRS you must keep at least 4 years of employment tax records after filing your 4th quarter for the year. The IRS may audit these.
3. Keep the latest IRS forms available.
4. Worker’s Compensation Insurance: All businesses are required to carry this insurance coverage.
5. Post Notices: By State and Federal Law, Businesses are required to post notices that inform their employees of their rights and responsibilities under labor laws. Information on workplace posters is available by state.
6. Unemployment Insurance: If your business is required to pay unemployment insurance taxes, find your State’s Workforce Agency and register your business.
7. Hiring Reporting Requirements: The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 requires all employers to report newly hired and re-hired employees to a state directory within 20 days of their hire or rehire date. You can also use E-Verify to avoid mismatched names and social security numbers.
8. Taxes: The type of business you operate determines what taxes you must pay and how to pay them. Each quarter employers who pay wages that are subject to income tax withholding, social security, and Medicare taxes must file this information to the IRS. Your business structure determines how and what taxes you pay.
Useful Links for New Employers or Current Employers
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