Preparing for Your First Employee

Preparing for Your First Employee

A quick reference guide for your business.

It’s Time to Grow!

Hard Work. Motivation. Drive. Running a business on your own is a lot of work and now you are ready to hire your first employee. Congratulations!

Before you take this important step in your business growth, let’s lay a solid foundation for your new hire. Envision the work you are putting in now as setting the stage for future new hires; it will save you time and money and create a great onboarding experience for your employees.

Here are a few things to consider before hiring your first employee. Remember, we’re here for you every step of the way! 

Identify the Need

This first step is to clearly identify the need you are trying to fill. You are most likely drawn in a million different directions managing your business on your own. Consider the areas that do not utilize your skills. Would someone else thrive in that role so you can focus on what you do best? For instance, are you spending too much time on administrative tasks that an employee could manage for you?

While you are identifying the need, write down the tasks you want to take off your plate. Don’t worry, we know this employee may take on other tasks as your business grows. Establishing job duties now will guide your job posting, the interview process, and the onboarding of your new hire. 

Consider the Cost

This is an excellent time to decide if you need a part-time or full-time employee. What can you afford while still paying your salary and covering your monthly expenses? We can show you the true cost of hiring or suggest a good accountant if you want to dig deeper into your business finances. 

Payroll and Compliance

Critical to employment is payroll and labor law compliance. Before proceeding, decide how and when you will pay your new hire. Unless you are a wiz at payroll, contract with a company that can manage this for you (we know a great one!) They can also register your company to collect and pay federal, state, and local income taxes. 

Next is workers’ compensation insurance. Employers are required to provide coverage for employees and rates are based on the level of risk to the employee. For instance, insurance for a construction worker will be higher than for an administrative employee. You can get a quote from your insurance agent or ask us for an agency referral. 

Finally, there are federal and state labor laws you must abide by as an employer. These regulations are available in poster or PDF format and must be posted where employees can see them. We can help you determine which regulations apply to your business and guide you on the legal requirements.

Quick Note: Regulations and payroll taxes vary by state. Your new hire is under the regulations in the state where they work, so consider these implications before hiring a remote employee. 

New Hire Paperwork

Your new hire will need to fill out some paperwork for payroll and labor law compliance. Here is a sampling; you may have other needs depending on your business:

·       Form I-9 (Employment Eligibility Verification)

·       Form W-4 (Federal Tax Withholding)

·       Local Tax Forms

·       State Forms (Pennsylvania Workers’ Compensation Rights & Duties Form, etc.)

·       Direct Deposit Form

Employee Handbook or Policies

Think about any policies you want to put in place, along with a vision of your business and how you want to grow. For instance, do you want to offer flexible work hours, paid time off, or paid holidays?  What are your core values? What expectations will you have of employees? 

Since this is your first employee, you may want to start out with a short summary of company policies. As you add more employees, consider an employee handbook to guide them. This will save you time and keep everyone going in the same direction. The primary focus here is providing clarity for your team.

Wrap Up

Every business is unique and has different employment needs. Thrive HR Management is here to tailor a plan that’s specific to you and your business. Whatever support you want — from questions, to policies, or new hire paperwork, our team is here to help you through the entire process.

Don’t just survive. THRIVE!