So you have started up your small business. Congratulations! Things are going great and it’s looking like you may have some success coming your way. But what happens when that success gets to be too much for just one person? Along with that, how do you know when it’s the right time to start hiring? It’s hard to tell sometimes, especially considering how much extra cost an employee brings (around $4,000!). With this big of an investment, you not only want to make sure you’re picking the right person but also that you’re doing the right thing in the first place. Here are our simple steps on how to determine if it’s time to start hiring for your business and how to execute. Do you need an employee?
While being overwhelmed is certainly not a good place to be, it isn’t always a reason to jump to starting the hiring process. Hiring an employee requires deciding the specific needs you have and the manner in which those needs must be met. How many hours will they be working? Is it enough to justify adding somebody to the team? What skills do they need to have and what must their availability look like? Is this temporary or permanent employment? Asking yourself these questions can allow yourself a bit of insight into whether or not you genuinely want or need a new employee. If your answer is yes, then keep reading! How do you plan to prepare for the hiring process?
Now we’re back to the big ol’ 4 grand that we threw out there earlier. Can you afford to add that expense to your budget? If so, take the time to define the role and what exactly you are on the hunt for. Decide your business’s values and how you are going to align your workforce with them. There are plenty of options of places where you can advertise the open position, such as Indeed, Glassdoor, even social media! Get the word out there just like you would for your business’s regular product Are you legally allowed to hire?
If you don’t know, then you probably aren’t. Not to worry, though. The process of becoming legally allowed to hire is really quite simple! You can apply for an EIN, or Employer Identification Number, online. This acts almost like a Social Security Number for your business, as you will need to use it to pay taxes. …What about taxes?
The first step when it comes to taxes is to make sure that you are keeping good records. Choosing the right software that keeps your tax records secure and easily accessible is the key. Additionally, it is your responsibility to report to the IRS each employee’s yearly income. Visit the IRS website to learn more about what specific steps you need to take for a new hire.