Starting a business is an exciting time and eventually you’re going to need help keeping everything up and running. Below are 7 helpful steps for hiring your first employee. These steps will help make sure you follow federal and state regulations.
1. Get an Employer Identification Number (EIN)
You can get an EIN from the U.S. Internal Revenue Service. The EIN is used to report taxes and other information to the IRS as well as to report information about your employees to state agencies.
2. Set up records for withholding taxes
The IRS requires employees to keeps records of employment taxes for at least four years. You’ll need a federal income tax withholding, which is often referred to as a W-4 form. You will also want your federal wage and tax statement, which is referred to as the W-2 form. Employers are required to send a copy of all W-2 forms to the Social Security Administration by the last day of February to report the wages and taxes of your employees.
3. Employee eligibility verification
Within three days of hiring an employee, the employer must submit an I-9 form, which verifies an employee’s citizenship or eligibility to work in the U.S. You can visit the U.S. Citizenship and Immigration Services website to download the I-9 form and learn more information.
4. Register with your state’s new hire reporting program
Employers must report newly hired or re-hired employees within 20 days of hire to the state directory. You can visit Arizona’s new hire link here.
5. Workers’ compensation insurance
Employers are required to get workers’ compensation insurance through a commercial carrier using their state’s Workers’ Compensation Insurance Program.
6. Post required notices
Employers need to post certain notices in the workplace that notify employees of their rights. You can visit the U.S. Department of Labor website to find out which posters you need to display in your work place.
7. Taxes
Be sure to file your taxes. Employers who pay wages are required to file the Employer’s Quarterly Federal Tax Return or Form 941.
All of these steps may seem overwhelming when you have so much going on already. A skilled Arizona small business attorney can take care of these things for you, leaving you free to run your business.
Call JacksonWhite’s Small Business Law Team at (480) 464-1111 to discuss your case today.