Follow This Guide When Hiring Your First Employee

What To When Hiring Your First Employee - HK Insurance - Watertown, MABusiness is booming and you are getting more work than you can handle by yourself. This is exciting, and maybe even a dream come true. But how do you go about hiring your first employee? This guide is designed to help guide you through the process with some valuable shortcuts and safeguards. Taking a new employee will give you opportunities to grow, but it also comes with risk. Here is how you can limit the risk, while reaping the rewards.

Your Gut Feeling Isn’t Good Enough

Many people get in trouble when they believe they are a good judge of character, or they trust their gut feelings, or instincts too much. There are several reasons for this, but hiring your first employee is introducing a new element of risk to your business. Background checks, reference checks, and former employment verifications are all necessary. A high percentage of potential employees are deceptive with their resumes, so being thorough is a must.

The Hiring Process

Although thoroughness is the key, when hiring, there are some questions you simply can’t ask. For example, you can’t ask about race, religious affiliation, the applicant’s age, their sexual orientation, or marital status. Any question regarding a handicap, be it physical, mental, or emotional, is only permissible when it would hinder the applicant’s ability to correctly perform the job. Mold your interview questions to the specifics of the job.

Legal Requirements

There are several things which you will need to do. Use this list from the sba.gov in order to make sure you are following producers correctly.

  • Obtain an Employer Identification Number
  • Set up Records for Withholding Taxes
  • Employee Eligibility Verification
  • Register with Your State’s New Hire Reporting Program
  • Obtain Workers’ Compensation Insurance
  • Post Required Notices
  • File Your Taxes
  • Get Organized and Keep Yourself Informed

Make sure to file all paperwork and follow each procedure correctly. While this may be tedious, it is worth it to ensure that you and your business are protected. Make sure you have all your employee’s necessary information correct and stored in a safe place.

Protect Yourself with Employment Practices Liability

One of the most important steps in a small business is to protect yourself against loss. Large companies may be able to handle law suits from disgruntled ex-employees, but a small start-up does not have the time or resources to deal with expensive legal proceedings. Employment Practices Liability Insurance (ELPI) is designed to protect against law suits from potential, current, or former employees. For a better understanding of on the subject.

 

If you are interested taking your business to the next level, or you want to start a business, you need to be aware of your risk factors. Make sure you have proper business insurance and are aware of what your policy covers. Please contact our expert team at H & K Insurance, Watertown, MA, with questions or concerns about your business and insurance policies.