Preparing Your Business to Hire Its First Employees - Purple Fox Legal

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Preparing Your Business to Hire Its First Employees

By Purple Fox Legal

April 27, 2022

Getting ready to hire your very first employees is a huge milestone, and one that deserves many congratulations and pats on the back. However, it is not a decision that should be taken lightly. In fact, there is a lot of preparation that must be done before ever interviewing your first candidate. And, doing things properly the first time can save you a whole lot of headaches down the road. 

In this article, the best way to prepare for hiring employees will be discussed. Then, we’ll be sharing all the things you need to accomplish before your business is open for hire. 

4 Steps to Complete Before Hiring Your First Employee

  1. Ensure Your Business is Prepared

It’s important to make sure that your business is truly prepared for hiring its first employees, and this includes all the paperwork that must be filed. Before publishing your first job ad, your business should first:

  • File for an EIN: This is a unique number for businesses issued by the federal government. Short for Employer Identification Number, an EIN is required for processing payroll.  
  • Sign up for Worker’s Compensation Insurance: To help protect employees who may be injured on the job, registering for worker’s compensation is required. 
  • Register with the Labor Department: Make sure that your business is registered with your state as an employer. Registering with the labor department also prepares your business for paying unemployment taxes. 
  1. Set a Plan of Action

Once you’ve filed all the necessary paperwork, it’s time to begin outlining your ideal employee. Who do you want to work for you, and why? Why are you even hiring employees to begin with? Answering the tough questions for your business will help you match with the best employees for your needs. Here are some questions to ask yourself:

  • How will hiring employees help my business advance?
  • What’s my employee budget?
  • What are the exact roles I’m looking to fulfill?
  • Which responsibilities am I ready to delegate?
  1. Prepare for the New Employees

Now that your paperwork is filed and your business is prepared, it’s time to get ready for your very first employees. Do you have everything they need for their first day of work? 

Start by gathering all the new employee paperwork that they will be responsible for. This includes documents, like an Employee Information Form, W-2 forms, background checks, direct deposit forms, and more. Then, ensure that the employee handbook is ready to go. This should include your policies, procedures, and expectations of employees, and acts as great reference material. 

Finally, ensure that you post the required notices. These are helpful for explaining employee rights and are incredibly cheap to obtain. 

  1. Perfect Your Documentation

Finally, before ever opening your doors for employees, it’s important to check and recheck your business documentation. This is going to be the best way to keep everyone on the same page and your business advancing in the way that you want. Some documentation to consider includes:

  • IRS Forms

Are your payroll and tax records rock-solid and organized? Keeping excellent payroll paperwork and tax documentation is one of the best ways to protect your business and keep it in good standing. 

  • Personnel Files

Do you know the right method for keeping employee personnel files? Keeping these records stored, maintained, and up-to-date is critical for operating a successful business. Ensure your employee files are thorough and gone through regularly. Some things to include might be: resumes, employment verification, formal feedback, and a handbook receipt. 

Beginning the Search for Your First Employee

Hiring your first employees is an exciting experience, but it can definitely be overwhelming to the new business owner. This is where an experienced employment attorney can help. By hiring a lawyer, you can ensure your business stays on the right track, and always operates within the bounds of the law. Consider reaching out to one to learn more about your options today.