An employer identification number (EIN) is necessary for reporting employment taxes and for reporting employee information to state agencies. You can apply for an EIN online, by fax, or by mail.
Conduct Interviews & Check References
When you have found potential employees, make sure to spend time interviewing each one to determine who will be the best fit for your company. After you’ve narrowed down your candidates, check their references so you don’t have unwanted surprises down the road.
Set Up Employment Tax Records
According to the IRS, you must keep employment tax records for four years after the tax is due or after the tax is paid, whichever is later.
In addition to federal employment taxes, you may also be required to withhold state taxes from your employee’s paychecks.
Set Up a Payroll System
You’ll have to set up a payroll system to simplify and automate the process of withholding that amount from each paycheck.
File Your Taxes
To report and deposit income, social security and Medicare taxes withheld from your employee’s paychecks, you will have to file Form 941, the Employer’s Quarterly Federal Tax Return.
Verify Employee Eligibility
You will have to verify that your employee is eligible to work within the United States. To do this, you and your employee must complete Form I-9 within three days of hire. You don’t submit Form I-9 to the federal government, but you are required to keep the form on file for three years after the employee’s date of hire or one year after the date of the employee’s termination, whichever is later.
As an employer, you are required to display certain posters in your workplace to inform your employees of their rights and your responsibilities. These posters include “Employee Rights Under the Fair Labor Standards Act”, “Employee Rights and Responsibilities Under the Family and Medical Leave Act”, “Equal Employment Opportunity is the Law”, and more.
Stay Organized & Keep Your Employees Informed
As an employer, you have obligations to your employees, such as maintaining a healthy and safe workplace, providing benefits, and keeping your employees updated on your company’s policies. You can keep your employees up-to-date on company policies, employee expectations, and your employer responsibilities by compiling and maintaining an employee handbook.