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As the owner of a small business, you know the importance of avoiding unnecessary costs. Because of this, you may have chosen to operate your business on your own during the beginning stages. However, now that your business is growing, you may be feeling the workload has become too great to manage without the help of an employee. Before getting started, there are a few things you should know about the legal rules, required documentation, and administrative duties associated with hiring your first employee.
Legal Rules
First, educate yourself on the regulations that are relevant to the hiring of your first employee. Here is a quick look at the important laws you should know about as an employer:
Required Documentation
Next, small business owners will want to make sure they are keeping the appropriate documentation as is required by law. This information concerning employees is to be kept for up to three years. The United States Department of Labor clearly outlines all required documentation which must be obtained from new employees:
Administrative Duties
Lastly, know that once you have hired your first employee, your administrative duties are not complete. It is true that the bulk of the paperwork is completed during the hiring process. However, there are administrative duties which must be completed regularly. Creating a system for these records and tasks is helpful to staying organized and ensuring that nothing is missed.
First, the Internal Revenue Service requires employers to keep detail records of income, expense, and taxes paid and provides many resources for doing so on the small business portion of their website.
Secondly, the Occupational Safety & Health Administration requires regular reporting concerning employee safety practices, employee injuries and illnesses. Thirdly, regular records should be kept concerning both voluntary and required employment benefits and worker’s compensation insurance.
Lastly, creating and maintaining an up-to-date Employee Handbook helps employers to ensure they are following fair employment practices, maintaining a safe and fair workplace, and properly informing employees of policies and employee rights.
Hiring your first employee is a big next step for small business owners, but it is also evidence of success in running your business. Educating yourself on employment rules and regulations is an essential aspect of becoming an employer for the first time. Additionally, creating a system for collecting and maintaining employee records is helpful in remaining organized throughout the process. The organization methods used during the hiring process can be carried out in day-to-day operations, simplifying the regular administrative duties required of a small business owner and employer.