Hiring your first employee is something to be celebrated – you’ve reached a pivotal point in your business, and now you need help to push it further forwards. This is exciting and a real turning point for you. It can also feel worrying, even scary, as it’s such a big step. Now your business is going to need to not just take care of you but someone else as well. That person will rely on you to pay them, help them progress in their career, and generally keep them happy. It’s a big responsibility.
There is a lot to consider before you take on your first employee, but if you have done your homework thoroughly enough and weighed up the pros and cons, you should be able to determine the right time to do it.
However, once you have hired someone, the research doesn’t stop there. You’ll still need to put some things in place to ensure you’re doing everything you should be doing. With that in mind, here are some things you’ll need to do when you hire your first employee.
Get An EIN
When you have employees, you need to get an EIN for your business. EIN stands for ‘employer identification number’, and it’s a crucial component when it comes to your employees. When you have this number, you can ensure you are paying the right taxes, and your employees will be taken care of.
Make sure you are aware of all the different aspects of what an EIN will mean for your business and when you should apply for one. Asking questions like how long does it take to get an EIN and similar is a good way to start, and you can plan everything about this once you have more information.
Give Them A Contract
When you hire someone, you must give them a contract. This should be signed by both you and them, and each of you should keep a copy. This can be a physical document, but these days it’s more likely to be a digital one.
The contract outlines everything you will do for your employee, including how much they will be paid, how many vacation days they will have, and what additional benefits you are offering them. It also outlines everything you expect from your employee in return, such as the hours they will work and the behaviour they will demonstrate. When you have both signed this contract, it means you both accept the terms laid out, and any wrongdoing can be dealt with – on either side.
Get The Right Insurance
As a business, you should have insurance already. However, if you don’t yet have any staff, this insurance is not going to cover employees; it is more likely to cover any problems your customers have or perhaps the building or vehicles you use for your business.
Once you have an employee, it’s a good idea to speak to your insurer to see if you can upgrade your insurance to cover workers. If not, you can find a new policy that will cover them. In this way, your business will stay safe if something were to go wrong, and your employee would more easily get any help they might need.