So, you’ve decided it’s time to bring in some help for your startup business.
Finding the right fit is essential, whether you need administrative help, delivery people, programmers, customer service, or marketing advisors. But where do you begin the process of startup hiring?
Here’s a step-by-step on how to hire new employees at your startup.
1) Determine if it is necessary to hire an employee
Even if you’re an early-stage startup, hiring new employees can take pressure off you and your existing employees. If you already have staff, you might see signs of burnout—that’s how you know it’s time to bring in some relief.
For example, suppose you’re ready to hire your first employee in Texas. Before you post that job opening, complete a small business health checklist—then ask yourself:
Will you need permanent or temporary help?
How many hours will you need help each week?
Will the new employee need training or specialized skills, or can they start immediately?
Can you afford to bring in someone?
Could you outsource this task to a freelancer rather than hiring staff?
For example, if you need temporary help to get through a busy quarter, a part-time team member, seasonal staff person, or independent contractor may be enough support.
However, a full-time employee might be what your business needs—they can free up your time so you can focus on the essentials and take pressure off an exhausted staff.Check more with the help of best small business insurance companies
2) Comply with legal requirements
Before bringing on temporary help or permanent employees, you must file for a tax identification number (Employer Identification Number) from the IRS.
The Employer Identification Number (EIN) is like a Social Security Number for your business. Even as a sole proprietor hiring employees, an EIN can help to guard you against fraud.
If you didn’t file for an EIN in the early days of starting your company, the IRS offers a simple enrollment process on their website that provides a number immediately. Alternatively, you can set it up by fax or mail.
Your business must comply with the US Department of Labor (DOL) laws. The DOL laws require most companies to display posters of employees’ rights in a prominent location. Often, you can download and print relevant employee posters rather than buying them.
Remember that your state may also have state-specific labor laws, such as minimum wage rights and employment age requirements, to consider when hiring.
3) Outline an employee benefit plan
As a business owner, you must decide which benefit options you want to offer your first hire. Employee benefits can go a long way to attracting and retaining the best candidates—if your business does not provide much or any perks, you may lose the best talent.
However, some employee benefits are compulsory while others are optional—and the requirements can vary by state. For example, if you’re hiring your first employee in Georgia, your startup business may need to have:
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