In our last lesson we continued our series on how to hire and manage, with a look at how to conduct initial interviews.  In today’s lesson we are going to continue that series with a look at the legalities of hiring employees.  

1. The Legalities for hiring employees
by FitSmallBusiness.com

2. Before Your First Employee Starts, You
Legally Should...

3. A) Start An Employee File
•Personal Information - Full Name,
Social Security Number, Mailing
Address, Gender, and Date of Birth
•Compensation - Employee’s Hourly
Wage or Weekly Salary, Frequency of
Compensation Payment.

4. A) Start An Employee File
•Payroll Deductions - What is being
deducted from paychecks?
•Records Of Hour Worked - Hours
Worked and Overtime Hours.

5. A) Start An Employee File
• Records of Compensation Paid -
Date, Amount, and Period of Time
Covered For Payments.
Check Susan Heathfield Article.

6. B) Collect W-4 Forms From The
New Employee
• 2103 IRS W-4 Form - Your
employee may have to fill out
forms related to state income
taxes.

7. B) Collect W-4 Forms From The
New Employee
•State Income Tax Forms For
Employees - You will need to
provide employees with your
Employee Identification Number
(AKA EIN or FEIN)
•Get your Employer ID number -

8. C) Report Your New Hire To The State
After you hire the new employee you have 20 days of to
report the new hire information to the state. This should
include the employee’s name, address, social security
number, hire date and first day of work.
Where To Report New Hires

9. D) Verify The Employee Is Legally Allowed to
Work And Fill Out The I-9 Form
A representative of the company must fill out this form and
collect the information from the documents provided by the
employee. You don’t submit the I-9 form, but must have it
available for authorities to examine.

10. E) Put Up Federal & State Labor Law Posters
When you have employees, you need to put up notices required by
state and federal laws in areas where all employees can see them.
Where To Buy Posters

11. F) Buy Worker’s Compensation Insurance
In 49 out of the 50 states (TX is the exception), you are legally
required to buy worker’s compensation insurance when you have
employees. In most states, this insurance is bought through the
private marketplace.

12. And Finally...

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