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So You’re Ready to Hire Your First Employee: What You Need to Know

Job interview

You’re a small business Superman, tackling a variety of business tasks in any given day. While you have to wear many hats as a small business owner, eventually you need to hire an employee or two once your income levels are capable of handling it. According to ADP Research Institute, 82,000 jobs were added to the economy in July from small business owners. If you’ve never hired an employee before, particularly in the IT sector, here are a few essential tips to keep it simple instead of stressful.

The Basics

The Small Business Administration covers a great deal of the preparation required when hiring your first employee, starting off with getting an employee identification number for IRS reporting. You have to report the federal income tax withholding of your employees as well as their wages on form W-2. Depending on your state, you may need to do this on a state and local level as well.

You also must establish a workers’ compensation insurance policy prior to hiring any employees. Always check on the candidate’s legal right to work in the United States, and report the new hire through your state’s reporting program.

Outfit your work location with required notices from federal and state laws. File ISR Form 941 to report all applicable federal taxes. Create and keep payroll information for your employees as well as following the federal and state record storage requirements.

The Benefits

While many employee benefits are optional, several benefits are required. Unemployment insurance is handled on a state-by-state basis, so double check to see if this is a benefit you’re providing to employees. Disability insurance is required in several states, such as California and New York. Finally, you are required to provide leave under the Family and Medical Leave Act for up to 12 weeks, although this only applies to small businesses with over 50 employees.

Cast Your Net

When it comes to finding your perfect match, especially if you’re looking for a specialized skillset such as proficiency with HTML 5 or skilled in software project management, you want to focus on specialized job search sites and recruiters. Post your job across tech-related job portals and Linkedin groups. If you know exactly what you want and you don’t want to bother with waiting for responses, use a recruiter to court your dream employee.

Once you get resumes coming in, it’s a complete job of its own to look through the applicants and figure out who could work for your work environment. Google’s Web Human Resource service has recruitment features, employee management, training, performance tracking and even payroll tools. It’s a cloud-based app that is free for 10 employees, then $1 per employee every month after that.

If you aren’t finding the response you feel that your company should get, look at ways to go viral or release a marketing effort that will turn heads. In his “16 Rules of Survival,” Bob Parsons of GoDaddy wrote about the importance of getting and staying out of your comfort zone. GoDaddy certainly did that with their infamous Superbowl ads, which made them a household name even with people who will never buy a domain in their lives. Think in a similar vein with your recruitment efforts to get noticed.

Author’s Bio:

John Conway: John is a single dad who loves watching the St. Louis Rams and checking up on his fantasy football team.
Posted on September 18th, 2013 by Rachel Braam, Office Manager

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